Madras HC grants interim relief to director Shankar, blocks ED’s asset seizure

After considering both sides, the court granted an interim stay on the ED’s move to freeze Shankar’s assets.

The Madras High Court has issued an interim stay on the Enforcement Directorate's (ED) decision to freeze director Shankar's assets amid the ongoing Enthiran film copyright dispute.

As reported by News18, Shankar challenged the ED's move by filing a petition in the Madras High Court. The case was presided over by Justices M.S. Ramesh and N. Senthilkumar.

Senior advocate PS Raman, representing director Shankar, strongly contested the Enforcement Directorate’s (ED) move to freeze the filmmaker’s assets, asserting that Shankar had not violated any copyright laws related to Enthiran’s story.

He highlighted that the ED's action was taken despite a prior ruling by a single judge, which had already ruled in favor of Shankar in a similar case filed by Arur Tamilnadan.

Raman further argued that the ED’s claim was baseless, pointing out that Shankar’s remuneration of Rs 11.5 crore was not solely for the story but also for his broader creative contributions to the film.

He questioned the legitimacy of the asset freeze, emphasizing that the ED had taken this step without awaiting a final court verdict on the matter.

The judges, too, expressed concerns over the ED’s approach, particularly the decision to launch an investigation based on an individual’s complaint. They questioned why the agency proceeded with freezing Shankar’s assets before the legal dispute reached its final conclusion, despite the previous court ruling in his favor.

In response to the court’s inquiries, the ED's counsel defended the agency’s right to launch an investigation based on individual complaints. They maintained that their actions had not harmed director Shankar and that he had the legal avenue to challenge them.

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After considering both sides, the court granted an interim stay on the ED’s move to freeze Shankar’s assets. Additionally, the court directed the agency to submit its response on the matter. The next hearing has been scheduled for April 21.

The ED had previously taken action, claiming that Shankar violated copyright laws concerning the film’s story and used his remuneration from Enthiran to acquire immovable assets. Allegations suggested that his properties were linked to the disputed earnings.