Indore News: HC Dismisses Plea Challenging ED Search Against S Kumar’s Ex-CMD | Wikimedia
Indore (Madhya Pradesh): Indore Bench of Madhya Pradesh High Court on Tuesday dismissed a writ petition filed by industrialist Nitin Shambhukumar Kasliwal, challenging search and seizure operations conducted by Enforcement Directorate (ED) under Prevention of Money Laundering Act (PMLA).
A division bench comprising Justice Vijay Kumar Shukla and Justice Alok Awasthi declined to interfere with ED’s action, holding that the petitioner has an effective statutory remedy available before the adjudicating authority under the PMLA.
Kasliwal, former chairman and managing director of the now-liquidated textile company S Kumar’s Nationwide Limited (SKNL), had approached the court seeking quashing of a search authorisation dated December 22, 2025 and the consequent search and seizure carried out a day later. He also sought a direction for the return of seized assets, alleging that the ED’s action was illegal, arbitrary and actuated by malice.
The petitioner contended that the ED failed to record a valid “reason to believe” as mandated under Section 17 of the PMLA and that no proceeds of crime were involved. He further argued that the searches were conducted as a “counterblast” shortly after the High Court had granted him relief in a separate matter by lifting travel restrictions imposed in connection with CBI cases lodged by lender banks.
Opposing the plea, the ED raised a preliminary objection on maintainability, submitting that reasons to believe were duly recorded and placed before the adjudicating authority and that proceedings under Sections 17(4) and 5(5) of the PMLA were already pending. The agency argued that the petitioner would have a full opportunity to contest the legality of the search and seizure before the competent forum.
Accepting the ED’s submissions, High Court observed that proceedings under the PMLA are distinct from the scheduled offences under investigation by the CBI and earlier interim orders passed in favour of the petitioner did not bar the ED from initiating action for alleged money laundering. The Bench also rejected allegations of mala fides, noting the absence of specific accusations against any ED official.
“In view of the availability of an alternative statutory remedy, we are not inclined to entertain the present petition,” the court said while dismissing the writ petition.
