Telangana High Court has set aside the search and seizure of cash and jewellary by ED as it was done without recording the ‘reasons to believe’

Telangana High Court

Telangana High Court quashes the search warrant issued by the Additional Director of the Enforcement Directorate who did not recorded ‘reasons to believe’. The search and seizure of the cash and jewellary by ED was set aside. The case was M/S Musaddilal Gems and Jewels (India) Pvt. Lmt.V/S Union of India. (W.P. No. 39378 of 2022). The case was presided by Mr. Justice K Sarath.

Facts of the cases

  1. A petition was filed under Article 226 in Telangana High Court. The petition was filed to quash the search and seizure of Jewels and Cash of the petitioner.
  2. The additional Director of the Enforcement Directorate issued the search warrant/authorization to his subordinates without recording “reasons to believe”. The Deputy Director of the enforcement recorded the reasons to believe without any date and time, which clearly shows that without following the requirements under Section 17(1) of the PMI Act.
  3. The authorities conducted the search and seizure and seized jewellery, cash and other belonging of the petitioner.
  4. The petitioner submitted that the search warrant was only shown, signatures were forcefully taken and the petitioner had also not read the contents of the search warrant.


The court ruled that the respondents conducted the search and seizure without following the procedure outlined in Section 17 of the PML Act, and even after the search was completed, they did not follow the procedure outlined in section 17 of the PML Act.

The court directed the respondents the release all jewellery, cash and other articles seized.

PRIME LEGAL is a full-service law firm that has won a National Award and has more than 20 years of experience in an array of sectors and practice areas. Prime legal falls into a category of best law firm, best lawyer, best family lawyer, best divorce lawyer, best divorce law firm, best criminal lawyer, best criminal law firm, best consumer lawyer, best civil lawyer.”


Click here to view your judgment

Leave a Reply

Your email address will not be published. Required fields are marked *