'ED crossing all limits’: CJI Gavai raps Central agency, stays raids on Tamil Nadu's liquor corporation TASMAC

Criticising the Enforcement Directorate (ED) for conducting raids at the headquarters of the Tamil Nadu State Marketing Corporation (TASMAC), the Supreme Court, while staying further action in the money laundering case observed that the Central agency is "crossing all limits".

 

A bench comprising Chief Justice of India B.R. Gavai and Justice Augustine George Masih expressed strong disapproval, stating that the ED was exceeding its authority and acting in violation of constitutional principles by targeting a state government entity.

 

The top court issued a notice to the ED in response to a petition filed by the Tamil Nadu government challenging a Madras High Court order that had permitted the central agency to continue its probe into an alleged ₹1,000 crore scam involving TASMAC.

 

“How can there be a criminal case against a corporation? Your Enforcement Directorate is crossing all limits,” Chief Justice Gavai observed during the hearing.

 

Additional Solicitor General S.V. Raju, appearing for the investigating agency, urged the top court not to stay the proceedings and stressed that there is a foolproof case and money trail as well.

 

But the bench went ahead and stayed ED's proceedings and questioned the agency’s basis for initiating the money laundering case. “Where is the predicate offence? When FIRs are already filed against officers, why is the ED intervening here? Let the ED file an affidavit,” the bench remarked.

 

Senior advocate Kapil Sibal and Mukul Rohtagi, appearing for Tamil Nadu, told the bench how the phones and other personal devices are taken away and are being cloned, which is violation of their privacy.

 

The case pertains to ED raids conducted between March 6 and 8 at TASMAC’s headquarters in Tamil Nadu over allegations of liquor overpricing, tender manipulation, and bribery irregularities allegedly amounting to more than ₹1,000 crore.

 

The ED’s probe was reportedly based on over 40 FIRs registered over the years by the state government and TASMAC against its own officials. However, the Dravida Munnetra Kazhagam-led Tamil Nadu government and TASMAC have accused the ED of overstepping its jurisdiction and declared the raids unlawful.

 

The Tamil Nadu government approached the Supreme Court, challenging the ED's raids on TASMAC, alleging that the central agency had overstepped its authority and violated constitutional principles. It further accused the ED of acting out of political vendetta and declared the raids unlawful.

India