The bench observed that the Enforcement Directorate is violating the federal concept of governance. Further adding that the ED probe will not proceed against the state-run TASMAC in the meantime
Supreme Court criticized the Enforcement Directorate for ‘crossing all limits’ and undermining the federal structure of governance. File Pic.
The Supreme Court on Thursday criticized the Enforcement Directorate for ‘crossing all limits’ and undermining the federal structure of governance, as it ordered a stay on the money laundering investigation against Tamil Nadu’s state-run liquor retailer TASMAC over alleged irregularities in the issuance of wine shop licences.
Issuing a notice to the Enforcement Directorate on petitions filed by the Tamil Nadu government and the Tamil Nadu State Marketing Corporation (TASMAC), a bench led by Chief Justice B R Gavai and Justice Augustine George Masih addressed Additional Solicitor General S V Raju, who was representing the ED, stating that ‘Your ED is crossing all the limits.’ The bench observed that the Enforcement Directorate is violating the federal concept of governance. Further adding that the ED probe will not proceed against the state-run TASMAC in the meantime. Countering the court, the law officer said that the issues involved corruption of over Rs 1000 crore and hence ED is not crossing any boundaries at least in this particular case, reported PTI
The bench acknowledged the arguments made by senior advocates Kapil Sibal and Amit Anand Tiwari, who pointed out that the state government had already registered over 40 FIRs since 2014 concerning the allocation of liquor shop licences. Despite this, the ED suddenly intervened and conducted raids on TASMAC, they noted.
The bench questions, “How can you raid the state-run TASMAC?”
The DMK-led Tamil Nadu government and the Tamil Nadu State Marketing Corporation (TASMAC) filed petitions before the Supreme Court, opposing the Enforcement Directorate’s (ED) recent raids conducted on TASMAC premises in connection with an alleged money laundering case.
The state government and TASMAC challenged the legality and justification of these actions, arguing that the ED had overstepped its jurisdiction, particularly given that the state had already taken action in the matter through multiple FIRs.
The petitions specifically contested an April 23 judgment by the Madras High Court, which had dismissed their earlier pleas and effectively allowed the ED to carry on with its investigation. The High Court's ruling gave a green light for the central agency to proceed under the Prevention of Money Laundering Act (PMLA), leading the state authorities to seek urgent relief from the Supreme Court to halt what they termed as an infringement on the state's authority and violation of federal principles.
(With inputs from PTI)
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