The Supreme Court has stayed the Enforcement Directorate’s (ED) probe into TASMAC over alleged ₹1,000 crore corruption, citing overreach and violation of federal standards.
In a crucial ruling, the Supreme Court on Wednesday stayed the Enforcement Directorate’s (ED) money laundering investigation into Tamil Nadu’s country-run liquor retailer, TASMAC. The top courtroom expressed critical worries about the ED’s jurisdiction, suggesting the vital agency turned into encroaching upon the nation’s domain.
A bench led by Chief Justice B.R. Gavai and Justice Augustine George Masih said the ED was “crossing all limits,” questioning how the agency could raid a government-run enterprise like TASMAC. The bench’s sharp comments came during a hearing on the Tamil Nadu government’s plea challenging ED raids in Tamil Nadu, particularly targeting TASMAC.
Additional Solicitor General S.V. Raju, appearing for the ED, defended the organisation’s moves, announcing the case concerned corruption well worth over ₹1,000 crore. He insisted that the ED had not overstepped its limits in this research.
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What the Madras High Court Had Said
In its earlier decision, the Madras High Court dismissed petitions filed by both the state government and TASMAC, allowing the ED to proceed with its investigation under the Prevention of Money Laundering Act (PMLA). The court ruled that money laundering was “a crime against the people of the nation” and could not be shielded from scrutiny.
The High Court rejected the state’s claims that the ED’s actions were politically motivated and said courts could not be drawn into assessing “political forces at play.” It also dismissed concerns about harassment of state officials, calling the arguments “inadequate and highly disproportional” in light of the public interest.
On the issue of whether the ED required prior consent from the state government to conduct searches, the court ruled against it, calling such a demand “completely illogical and bereft of conscience.”
With the Supreme Court’s latest intervention, the legality and scope of ED raids in Tamil Nadu—especially when involving state-run enterprises—will come under renewed scrutiny.
