Tamil Nadu TASMAC scam: In a sharp rebuke to the Enforcement Directorate (ED), the Supreme Court on Thursday stayed the money laundering probe against Tamil Nadu State Marketing Corporation (TASMAC), calling the agency’s actions a breach of federal principles.
A bench led by Chief Justice B R Gavai and Justice Augustine George Masih issued notices to the ED while observing that the agency was “crossing all the limits.”
“The Enforcement Directorate is violating the federal concept [of Constitution],” the bench remarked during the hearing. The court was responding to petitions filed by the Tamil Nadu government and TASMAC challenging ED’s actions, which included raids on TASMAC premises in connection with alleged corruption in the grant of liquor shop licences.
“How can this offence be against the corporation? You may register against individuals.. A criminal matter against the corporation? Your ED [Enforcement Directorate] is crossing all limits,” CJI Gavai remarked.
ED accused of encroaching on state jurisdiction
Representing the ED, Additional Solicitor General S V Raju defended the probe, citing alleged corruption involving over Rs 1,000 crore. However, the court pushed back, questioning the basis and legality of the raids, especially given that over 40 FIRs had already been filed by the state police regarding the matter since 2014.
Senior advocates Kapil Sibal and Amit Anand Tiwari, appearing for the Tamil Nadu government, emphasised that law and order, as well as retail liquor licensing, fall within the state’s domain. “How can you raid the state-run TASMAC?” the bench queried, underscoring concerns about central overreach.
Madras HC order challenged
The petitions filed by Tamil Nadu were in response to an April 23 order by the Madras High Court, which had refused to interfere with the ED’s probe and allowed it to proceed under the Prevention of Money Laundering Act (PMLA). The Supreme Court’s stay effectively pauses the ED’s activities in the case, pending further review.
DMK slams BJP, calls ED a political tool
Reacting to the SC’s decision, DMK leader R S Bharathi called the development a “blow” to the BJP’s attempts to “malign” the Tamil Nadu government. The ruling party in Tamil Nadu also accused the ED of being a “blackmailing organisation” selectively targeting non-BJP ruled states.