Madras HC stays ED’s property attachment proceedings against director Shankar

Directing the ED to file counter affidavit, the bench adjourned the case to April 21 for further hearing.
Director S Shankar
Director S Shankar(Photo | Express)
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CHENNAI: The Madras High Court on Tuesday stayed the Enforcement Directorate’s proceedings over the provisional attachment of three properties valued at Rs 10.11 crore belonging to film director S Shankar in connection with a copyright infringement complaint regarding the story of Rajinikanth-starrer Enthiran.

The interim stay order was issued by a division bench of Justices MS Ramesh and N Senthilkumar while hearing the petitions filed by the director praying for orders to quash the ED’s provisional attachment order passed on February 17, 2025, under the provisions of Prevention of Money Laundering Act (PMLA), 2002.

The division bench noted that the central agency ought not to have done so since a single judge of the high court, in 2023, had stayed the proceedings in the scheduled offence case.

“The provisional attachment order is based on the allegations made in the civil suit relating to infringement of copyright, apart from the allegations in the criminal complaint,” the bench said in the interim order.

Stating that the issue as to whether the impugned provisional attachment order be quashed can finally be adjudicated, the bench said, “In view of a prima facie case has been made out, there shall be an order of interim stay.”

Directing the ED to file counter affidavit, the bench adjourned the case to April 21 for further hearing. Senior counsel PS Raman, assisted by D Saikumaran, appeared for Shankar.

He said the remuneration received for Enthiran film, which includes Shankar’s work as director, writer of screenplay, story, dialogue, besides the visual effects, scene and action sequence conceptualisation cannot be considered proceeds of crime.

ED’s counsel Cibi Vishnu submitted that the agency can take action based on a private person’s complaint; no prejudice has been caused to Shankar through the provisional attachment of the property and he can explore the remedies.

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