Madras High Court imposes interim stay on ED's move to freeze director Shankar's assets

The Madras High Court has granted an interim stay on the Enforcement Directorate's (ED) move to freeze director Shankar's assets in connection with the 'Enthiran' film copyright dispute. The ED had earlier taken action to freeze Shankar's immovable assets, alleging that he had violated copyright laws related to the film's story. It was claimed that Shankar acquired the properties using the remuneration received from 'Enthiran'. In response to the ED's action, Shankar filed a petition in the Madras High Court, where the case was heard by Justices M.S. Ramesh and N. Senthilkumar as per News 18. Senior advocate PS Raman, representing Shankar, argued that the director had not violated any copyright laws concerning the film’s story. He emphasized that the ED’s action was initiated despite a previous ruling by a single judge, who had already delivered a verdict in favor of Shankar in a similar case filed by Arur Tamilnadan.

Furthermore, Raman questioned the legitimacy of the ED’s move, pointing out that Shankar's Rs 11.5 crore remuneration was not exclusively for the story but also for various other creative contributions. He challenged the ED's basis for freezing the assets and questioned how such a step could be taken without waiting for the final verdict in the legal proceedings. The judges also raised concerns about the initiation of an investigation based on an individual’s complaint. They questioned why the ED proceeded with freezing the assets before the conclusion of the ongoing dispute, despite the earlier judgment favoring Shankar.

Responding to the court’s queries, the ED's counsel asserted that the agency had the authority to initiate an investigation based on individual complaints. They also argued that their actions had not caused any adverse impact on Shankar and that he could contest the case legally. After hearing the arguments, the court imposed an interim stay on the ED's decision to freeze Shankar's assets. The court also instructed the ED to submit its response regarding the issue. The next hearing for the case has been scheduled for April 21.