SC Slams ED for Crossing Limits Over TASMAC Raids, Halts Money Laundering Probe

The Supreme Court on Thursday strongly criticized the Enforcement Directorate (ED) for conducting raids on Tamil Nadu State Marketing Corporation (TASMAC), the state-run liquor distribution company. In a significant development, the apex court stayed the ED’s ongoing money laundering investigation into TASMAC, questioning the agency’s jurisdiction and intent.

While hearing petitions filed by the Tamil Nadu government and TASMAC challenging the ED’s actions, the court expressed serious concern over what it described as the federal agency “crossing all limits.” The bench remarked that the ED appeared to be violating the federal structure by targeting a state-owned enterprise without sufficient grounds.

“How can the Enforcement Directorate raid TASMAC? This is a violation of the federal principle,” the court observed, indicating that such moves undermine the balance of power between the Centre and the states. The court also issued a formal notice to the ED, seeking an explanation for the raids conducted in March and earlier this month.

The Supreme Court’s observations underscore growing tensions between the Centre and opposition-ruled states over the ED’s increasing reach. The Tamil Nadu government has accused the central agency of using its powers selectively and for political motives.

The stay on the money laundering probe comes as a major relief to the Tamil Nadu administration, which had argued that the ED was acting without proper jurisdiction or evidence. The matter is likely to be heard again after the ED responds to the court’s notice.