Mumbai, October 24, 2026: Pointing out that the legal time limit had long lapsed, the Bombay High Court has directed the Directorate of Enforcement (ED) to immediately return all seized documents and digital devices to Mukesh Talreja, Director of Chellaram Mills, and unfreeze his bank locker.
A bench headed by Justice Bharati Dangre passed the order while allowing a petition filed by Talreja. The petition challenged the ED's continued holding of his personal and business properties long after the mandatory statutory timeline had expired.
Underlying Case And ECIR Quashed
The ED had registered an Enforcement Case Information Report (ECIR) following an initial FIR naming Talreja as an accused. Over the course of the investigation, the underlying predicate-offence FIR was quashed by the Bombay High Court, and the Delhi High Court subsequently quashed the ECIR, ruling that money laundering proceedings cannot legally stand without an active underlying offence. The related legal battles eventually reached the Supreme Court.
Despite the passage of time and the quashing of the primary case, the ED retained the records and kept the locker frozen. Talreja approached the High Court seeking their immediate release, arguing that under Section 20 of the Prevention of Money Laundering Act (PMLA), the 180-day retention period had lapsed without the mandatory approval from the Adjudicating Authority to extend it.
Court Notes Expiry Of Retention Period
During the hearing, the court noted that the ED did not dispute that the 180-day deadline had lapsed, nor did it possess any order from the Adjudicating Authority authorising further retention or freezing under Sections 17 and 20 of the PMLA.
Highlighting this procedural failure, the bench observed in its judgment:
“…we find substance in the argument of the learned counsel for the Petitioner that by operation of law and efflux of time, the ED has lost the authority to continue to retain the articles or permit the continuation of the freezing of the locker. In such circumstances, the prayer of the Petitioner deserves to be answered in the affirmative.”
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Consequently, the High Court allowed the petition, ordering the ED to return all seized gadgets and papers to Talreja and hand over full possession of the released locker. Legal experts view the verdict as a crucial reminder that law enforcement agencies must strictly adhere to statutory time limits.
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