In a temporary relief for Tamil film director S Shankar, the Madras High Court on Tuesday stayed the Enforcement Directorate’s (ED) February 17 order allowing the provisional attachment of three of his properties worth more than Rs 10 crore over a copyright dispute.

The ED's action stemmed from a copyright dispute under the Prevention of Money Laundering Act (PMLA), prompted by a complaint filed by writer Aarur Tamilnadan in Chennai’s Egmore Magistrate Court. Tamilnadan alleged that Shankar’s blockbuster film Enthiran (2010), starring Rajinikanth and Aishwarya Rai, was adapted from his story "Jugiba."

The division bench of Justices MS Ramesh and N Senthilkumar granted the stay in response to Shankar’s plea challenging the ED’s order. “Can the ED register cases based on an individual’s complaint that a crime has been committed,” the court asked. “Why didn’t the ED wait for the outcome of the complaint before attaching the property?” They directed the ED to submit a counter affidavit and scheduled further hearings for April 21.

This legal saga follows a previous judgment by a single judge bench in June 2023, which dismissed Tamilnadan’s plea against Shankar, citing lack of evidence to support a copyright claim over ideas or concepts. The court had also stayed criminal proceedings related to the matter, questioning the necessity of the ED's provisional attachment amidst ongoing legal proceedings.

Senior counsel PS Raman, representing Shankar, argued that the earnings from Enthiran, encompassing Shankar’s multifaceted contributions as director, screenplay writer, and visual effects supervisor, did not qualify as proceeds of crime. In response, ED’s counsel Cibi Vishnu defended the agency’s right to act on private complaints and assured that Shankar could pursue legal remedies without prejudice.