‘ED crossing all limits’, SC stays probe in alleged Tamil Nadu liquor scam
The Supreme Court on Thursday stayed the Enforcement Directorate’s money laundering investigation against the Tamil Nadu State Marketing Corporation, or Tasmac, stating that the central probe agency was “crossing all limits” and violating the federal structure of the country, reported Live Law.
Tasmac is a government-owned company that has a monopoly over the wholesale and retail sales of alcoholic beverages in Tamil Nadu.
The ED has alleged that Tasmac is at the centre of a Rs 1,000-crore corruption network involving state officials, liquor distilleries and bottling companies. It based its investigation on first information reports filed under the Prevention of Money Laundering Act.
The agency on March 6 searched several locations across Tamil Nadu, including the Tasmac headquarters, in connection with the case.
On Thursday, a bench of Chief Justice BR Gavai and Justice AG Masih was hearing a petition filed by the Dravida Munnetra Kazhagam-led Tamil Nadu government and Tasmac, challenging the Madras High Court’s order in April.
The High Court had dismissed their plea against the Enforcement Directorate’s searches at the liquor corporation’s headquarters.
The Supreme Court questioned how the central agency could initiate a case against a corporation. “You may register cases against individuals…but corporations?” asked the bench. “Your ED is passing all limits!”
Advocate Kapil Sibal, representing the state government, told the court that 41 first information...
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