SC halts ED probe into Tamil Nadu’s TASMAC, says ED 'crossing all limits and violating federal structure'
PTC Web Desk: In a significant development, the Supreme Court on Thursday temporarily stayed the Enforcement Directorate’s (ED) investigation and raids on Tamil Nadu's state-run liquor corporation, TASMAC (Tamil Nadu State Marketing Corporation).
Delivering the order, Chief Justice of India BR Gavai issued strong remarks against the central agency, stating that the ED was “crossing all limits” and “violating the federal structure” by targeting a state-run entity. He emphasised that law and order fall under the jurisdiction of the state, making the ED’s intervention potentially unconstitutional and disproportionate.
This interim stay came in response to the Tamil Nadu government's appeal against the Madras High Court’s ruling on May 20, which had earlier upheld the continuation of the ED probe. The original approval for the investigation had been granted by the High Court on April 23, 2024.
The Enforcement Directorate (ED) has alleged a Rs 1,000 crore liquor scam in Tamil Nadu, claiming that certain distilleries paid unaccounted cash to secure liquor supply contracts through the state-run liquor corporation, TASMAC (Tamil Nadu State Marketing Corporation).
In response, the Tamil Nadu government strongly denied the accusations, informing the Supreme Court that it had already taken action against irregularities in the sector. Through the Directorate of Vigilance and Anti-Corruption (DVAC), the state had registered 41 FIRs between 2014 and 2021 targeting individual TASMAC outlet operators for alleged misconduct.
Tamil Nadu moved the Supreme Court challenging the ED’s raids and investigation into TASMAC, arguing that the central agency was overstepping its authority and violating the constitutional distribution of powers. The state emphasised that law and order is a state subject, and such interference undermines the federal structure.
The state government also accused the ED of conducting the raids with a political vendetta, branding the central agency's actions as illegal, excessive, and motivated by partisan interests.
- PTC NEWS
