In a significant legal development, the Madras High Court on Wednesday rejected multiple petitions filed by the Tamil Nadu State Marketing Corporation (TASMAC) and the state government, which sought to challenge the Enforcement Directorate’s (ED) raids on TASMAC premises conducted in March.
A division bench, led by Justices S M Subramaniam and K Rajasekar, dismissed two writ petitions from TASMAC and another from the Tamil Nadu government, thereby allowing the ED to continue its investigations under the Prevention of Money Laundering Act (PMLA).
The ED’s probe into TASMAC revealed serious allegations of financial misconduct involving several distillery companies and bottling entities. According to the agency, these entities were engaged in generating unaccounted cash flows and making illicit payments.
TASMAC, in its plea, had argued against the ED’s actions, claiming they were tantamount to harassment of its employees and an overreach of jurisdiction within the state’s territorial limits. The corporation also contended that the ED’s extensive investigations breached principles of federalism.
