‘ED crossing all limits, violating federal structure’: SC stays agency's investigation against Tamil Nadu's TASMAC

The Supreme Court on Thursday slammed the Enforcement Directorate (ED) for "crossing all the limits" and undermining the federal structure of governance. The court made the remarks while staying the ED’s money laundering investigation into Tamil Nadu's state-run liquor retailer, TASMAC, over alleged corruption in the issuance of wine shop licences.

Here's what Supreme Court said

Issuing notice to the ED on pleas filed by the Tamil Nadu government and the Tamil Nadu State Marketing Corporation (TASMAC), a bench comprising Chief Justice B R Gavai and Justice Augustine George Masih told Additional Solicitor General S V Raju, appearing for the anti-money laundering probe agency, that “Your ED is crossing all the limits.”

“The Enforcement Directorate is violating the federal concept (of governance),” the bench observed, adding that the ED’s probe against the state-run TASMAC will not proceed in the meantime.

The law officer opposed the order, saying the issue involved corruption over ₹1,000 crore and the ED is not crossing the limits “at least in this case.”

The bench took note of the submissions of senior advocates Kapil Sibal and Amit nand Tiwari that the state itself has lodged over 40 FIRs in cases related to allotment of liquor shop licences from 2014 and now the ED jumps in the picture and raids the TASMAC.

“How can you raid the state-run TASMAC,” the bench asked.

The DMK-led Tamil Nadu government and TASMAC approached the Supreme Court challenging the ED’s raids on TASMAC premises.

Also Read: Tamil Nadu: BJP accuses DMK govt of ₹1,000-cr ‘liquor scam’ – ‘MK Stalin distracting public’

Their petitions contested the April 23 order of the Madras High Court, which had dismissed their objections and permitted the ED to continue its investigation under the Prevention of Money Laundering Act (PMLA).

The Supreme Court, however, stayed the ED’s probe, expressing concern over the agency's actions and their implications for the federal structure of governance.

(With inputs from agencies)