In a significant development, the Tamil Nadu government and its liquor retail arm, Tamil Nadu State Marketing Corporation (TASMAC), withdrew their petitions from the Supreme Court on Tuesday. These petitions sought to transfer their cases against the Enforcement Directorate’s (ED) recent actions from the Madras High Court to another jurisdiction.
During a concise hearing, the bench, led by Chief Justice Sanjiv Khanna and Justice Sanjay Kumar, suggested that the Madras High Court is the appropriate forum for these matters. The Chief Justice remarked, “Let it be decided by the Madras High Court. We are here…You can come here later.”
The pleas revolved around the ED’s recent raids on state-run liquor outlets managed by TASMAC, which have stirred significant controversy and legal debate. This judicial decision underscores a pivotal 1956 Supreme Court judgment addressing the legal nuances of search and seizure, which the bench referenced during the proceedings.

Senior advocate Mukul Rohatgi, representing the state government, acquiesced to the court’s direction and subsequently withdrew the pleas. The Supreme Court formalized this withdrawal, thereby dismissing the petitions.
The case traces back to initial complaints filed by TASMAC against the ED’s operations, which included allegations of financial irregularities involving unaccounted cash and illicit transactions within distillery and bottling sectors. On March 20, the Madras High Court had temporarily halted further ED actions against TASMAC, demanding that the agency furnish all related investigative reports and FIRs.