Supreme Court Criticizes ED for Overstepping Boundaries in Tamil Nadu Case

The Supreme Court expressed strong disapproval of the Enforcement Directorate (ED) on Thursday, stating that the agency is overstepping its boundaries and violating the federal structure of governance. This statement was made as the apex court halted the ED's money laundering investigation against the Tamil Nadu State Marketing Corporation (TASMAC), a government liquor retailer. While hearing petitions filed by the Tamil Nadu government and TASMAC, Chief Justice B R Gavai and Justice Augustine George Masih remarked to Additional Solicitor General S V Raju, representing the ED, that the agency is crossing all limits.

The bench highlighted that the ED is infringing upon the federal concept of governance. Furthermore, it stated that the investigation against the state-run TASMAC would not proceed for the time being. A government lawyer objected to the court's order, arguing that the case involves corruption exceeding ₹1,000 crores and insisted that the ED is not overstepping its limits in this instance. However, the bench accepted the arguments presented by senior advocates Kapil Sibal and Amit Anand Tiwari, who pointed out that the Tamil Nadu government itself has filed over 40 FIRs related to the allocation of liquor shop licenses since 2014, and now the ED has intervened by raiding TASMAC. The bench questioned, how can you raid a state-run entity like TASMAC?

The Tamil Nadu government and TASMAC have approached the Supreme Court to contest the ED's raids on their premises. The state government is challenging the Madras High Court's order from April 23, which dismissed their petition and approved the ED's actions. The ED was granted permission to continue its operations under the Prevention of Money Laundering Act (PMLA).