ED Admits Lack of Power to Seal Premises Without ‘Reason to Believe’: Madras HC Orders De-Sealing

The Madras High Court has ordered the de-sealing of a premises that was sealed by the Enforcement Directorate (ED), after the agency itself admitted that it lacked the power to do so without having a "reason to believe" that the premises contained proceeds of crime. The court granted interim relief to the petitioner, noting that the ED's action of sealing the premises was prima facie without legal authority. The ED's admission that it did not have sufficient grounds to seal the property was a key factor in the court's decision. This ruling is a significant check on the powers of investigative agencies, emphasizing that they must act strictly within the confines of the law and cannot take coercive actions like sealing a property based on mere suspicion. The court has protected the petitioner's property rights from an arbitrary administrative action.