“ED Crossing All Limits” – Supreme Court Halts ED Probe in Tamil Nadu TASMAC Case

Tamil Nadu TASMAC Case: – In a strong rebuke to the Enforcement Directorate (ED), the Supreme Court on Thursday put an interim stay on its investigation into Tamil Nadu’s state-run liquor distribution agency TASMAC, questioning the legal and ethical basis of the probe.

The case stems from a plea filed by the Tamil Nadu government challenging a Madras High Court decision that had upheld the ED’s raid on TASMAC headquarters. During the hearing, the Supreme Court made sharp observations about the ED’s conduct, with the bench asking, “You can investigate individuals, but an entire corporation?”

With Chief Justice DY Chandrachud unavailable, the matter was heard by a bench comprising Justice BR Gavai and Justice Sandeep Mehta. The court granted an interim stay on the ED’s probe until further hearings, signaling serious concern about the federal agency’s overreach.

Representing the Tamil Nadu government, senior advocate Kapil Sibal highlighted the abrupt nature of the ED’s intervention. He noted that the state had already filed 41 FIRs between 2014 and 2021. “Suddenly in 2025, the ED swoops in and raids TASMAC headquarters,” Sibal argued. “They confiscated all employees’ mobile phones and cloned their data. This is a serious breach of privacy.”

The bench appeared disturbed by these actions. Justice Gavai, in particular, took a strong stance, remarking, “The ED is crossing all limits. If FIRs were already registered, what is the ED’s justification for stepping in now?”

In defense, Additional Solicitor General R. Venkataraman Raju, appearing for the ED, stated, “We haven’t done anything wrong. This is a case involving a ₹1,000 crore fraud.”

But the bench was not convinced. “Where is the predicate offence?” asked Justice Gavai sharply — referring to the foundational criminal offense required for the ED to legally initiate its probe under the Prevention of Money Laundering Act (PMLA).

Senior advocate Mukul Rohatgi, echoing concerns over employee rights, slammed the ED’s methods, especially the alleged data cloning. “All employees’ phones were cloned. Does privacy mean nothing anymore?” he questioned.

The court’s decision to pause the investigation brings temporary relief to the Tamil Nadu government but also opens up a broader conversation about the powers and accountability of investigative agencies.

With growing concerns across states about misuse of central agencies, this case is likely to set a significant precedent in how federal investigations are conducted — especially when state-run institutions are involved.

The matter will be heard again in the coming weeks, but for now, the Supreme Court has sent a clear message: investigative power must be exercised with responsibility and within constitutional boundaries.

Stay tuned for further updates on this developing story.