ED admits ‘inadvertent error’ in summoning producer Akash Baskaran despite court stay

The Enforcement Directorate tendered an unconditional apology to the Madras High Court for issuing summons to film producer Akash Baskaran despite a stay on proceedings in the TASMAC money laundering case.
Madras High Court
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The Enforcement Directorate (ED) on Monday, December 15, tendered an unconditional apology to the Madras High Court for issuing summons to film producer Akash Baskaran despite the court staying further proceedings in the Tamil Nadu State Marketing Corporation (TASMAC) money laundering case.

ED Assistant Director Vikas Kumar appeared in person before a division bench of Justices MS Ramesh and V Lakshminarayanan and filed an affidavit stating that the summons had been issued due to an inadvertent error. Accepting the apology, the court dropped the contempt proceedings against him.

The case relates to ED searches conducted earlier this year at TASMAC offices and at the residences and offices of film producer Akash Baskaran and businessman Vikram Ravindran, in connection with alleged irregularities in the procurement and sale of liquor. Following the searches, the ED had sealed their premises.

Baskaran and Ravindran challenged the ED’s actions before the Madras High Court, which granted an interim stay restraining the agency from continuing its investigation in the case.

Despite the stay, the ED later issued summons to Baskaran, prompting him to file a contempt petition alleging violation of the court’s order.

While closing the contempt proceedings against the Assistant Director, the bench issued fresh statutory notices to the Adjudicating Authority and the Registrar attached to its office for issuing a show cause notice despite being informed of the stay. The officials have been directed to file their responses by January 19.

The court noted that statutory notices had already been issued to these officials in October and that their personal appearances had been ordered. However, they failed to appear before the court.

Appearing for the ED, Additional Solicitor General ARL Sundaresan submitted that the Adjudicating Authority had stopped further action once the interim stay was brought to its notice, and that the issuance of the show cause notice was due to an inadvertent lapse by the Registrar.

The court, however, declined to exempt the Adjudicating Authority from contempt proceedings. “Let him come and give the explanation in the court,” the bench observed.

The matter will be taken up on January 19, when Adjudicating Authority chairperson Pradeep Kumar Upadhyay and administrative officer Nasreen Siddique are scheduled to appear before the Madras High Court.

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