The Supreme Court on Thursday came down heavily on the Enforcement Directorate (ED), staying its money laundering investigation into Tamil Nadu’s state-run liquor retailer, TASMAC, in connection with alleged corruption in the grant of wine shop licences.
A bench led by Chief Justice of India B R Gavai and Justice Augustine George Masih issued notice to the ED on petitions filed by the Tamil Nadu government and the Tamil Nadu State Marketing Corporation (TASMAC), questioning the agency’s jurisdiction in the matter.
“Your ED is crossing all the limits,” the bench told Additional Solicitor General S V Raju, who appeared for the federal agency. “The Enforcement Directorate is violating the federal concept (of governance),” the court observed, putting an interim stay on the probe.
The case stems from ED action following alleged irregularities in the allocation of liquor licences, which the agency claims involves corruption to the tune of ₹1,000 crore. However, the Supreme Court questioned the move to target a state-run enterprise like TASMAC, especially after senior advocates Kapil Sibal and Amit Anand Tiwari, appearing for the state, pointed out that over 40 FIRs had already been registered by Tamil Nadu authorities themselves since 2014.
“How can you raid the state-run TASMAC?” the bench asked sharply, highlighting concerns over central overreach.
The Tamil Nadu government and TASMAC had approached the apex court challenging a Madras High Court order dated April 23, which had allowed ED to continue its investigation under the Prevention of Money Laundering Act (PMLA). The petitioners argued that the ED’s actions undermined the state’s autonomy and bypassed established legal procedures.
The court’s remarks and interim relief signal growing judicial concern over the agency’s actions and their implications for federal balance.
The matter will now be heard after the ED files its response.
