Can Enforcement Directorate (ED) access personal data from mobile phones?

What happens to your personal data stored in case your mobile phone is seized by the ED? 

This is an issue of seminal important, that whether the Enforcement Directorate (ED) has the power to access or copy the personal data from the mobile phones seized during the search conducted by the enforcement agency?

In 2024, the Hon'ble Supreme Court directed the Enforcement Directorate not to access and copy the contents of Mobile phone of the Santiago Martin, the owner of Future Gaming and Hotel Services Private Limited. The Supreme Court had also stayed the summons issued by the ED requiring the physical presence of individuals for extraction of data stored in the respective physical devices. This signals towards a more stricter regime to be adhered with by enforced. 

Read the entire order at https://api.sci.gov.in/supremecourt/2024/57510/57510_2024_5_86_58074_Order_13-Dec-2024.pdf

In the landmark judgments delivered by the Hon'ble Supreme Court of India in  Vijay Madanlal Choudhary vs. Union of India (2022), the Hon'ble Court upheld the constitutional validity of various provisions of the PMLA, including Sections 17 and 18 that deal with search and seizure power. The Court also noted that the power to authorize searches is vested with high-ranking officials (Director or Deputy Director). Reasons must be recorded in writing before conducting searches. The material must be forwarded to the Adjudicating Authority in a sealed envelope. The requirement to file an application within 30 days for retention of seized items. 

In, Opto Circuit India Ltd. vs. Axis Bank & Ors. (2021), the Supreme Court examined Section 17 of PMLA in detail, particularly focusing on the pre-requisites for valid search and seizure. The Court held that under PMLA, the Director or authorized officer should, on the basis of information in his possession, have reason to believe that a person has committed acts relating to money laundering and there is a need to seize relevant records or property. Such belief must be recorded in writing.

In Pooja Singh vs. Directorate of Enforcement (2023), the Delhi High Court went ahead and examined the digital evidence extracted from seized mobile phones in bail proceedings under PMLA. The court noted that data extracted from the recovered mobile phones revealed communication related to the alleged money laundering offense. 

Interestingly, in a 2025 decision of Madras High Court delivered in Tamil Nadu Government vs. ED: The TASMAC Case (2025), disputes arose between the Tamil Nadu Government and ED. Tamil Nadu State Marketing Corporation (TASMAC) is the state-owned company that has a monopoly over wholesale and retail vending of alcoholic beverages in Tamil Nadu. In early March 2025, the ED conducted search operations at TASMAC premises, leading to a significant legal challenge by the Tamil Nadu government. During the said search, the ED  seized several electronic devices and accessed digital data from TASMAC officials. According to court records, the ED transferred the extracted data to a hard disk for further investigation. 

The question that arose in the case was What are the limitations on ED's authority to seize and access data from mobile phones, email accounts, and other digital devices?

The court prioritized economic justice, stating that the "economic rights of the people and the mandate to secure economic justice under the Constitution were given precedence over temporary inconveniences caused by legal procedures. The High Court allowed the ED to proceed with all further actions under the PMLA.

The said Madras High Court order was challenged in the Supreme Court, wherein court  strongly criticized the ED, with CJI Gavai remarking: "Your ED is crossing all limits". In line with the right to privacy, the court expressed concern over privacy violations, with reports that ED officials had cloned the phones of TASMAC employees. The Supreme Court stayed the investigation, raids, and questioning of TASMAC officials, and Gave the ED two weeks to file a detailed response. 

Read the Supreme Court's TASMAC Order at - https://api.sci.gov.in/supremecourt/2025/22384/22384_2025_1_22_62015_Order_22-May-2025.pdf