Tamil Nadu Government Moves Supreme Court Over ED Raids on TASMAC

ED Raids on TASMAC

In a significant legal development, the Tamil Nadu government has approached the Supreme Court of India, challenging the Enforcement Directorate’s (ED) recent raids on its state-run liquor enterprise, Tamil Nadu State Marketing Corporation (TASMAC). This comes after the Madras High Court's ruling on April 23, which dismissed the state’s plea and allowed the ED to proceed with its investigation under the Prevention of Money Laundering Act (PMLA).

The raids, which took place on March 6 and 8, targeted TASMAC offices and related entities. The state government and TASMAC argued in court that the ED's searches resulted in harassment of its officers, some of whom were detained for long hours. However, the High Court rejected these claims, stating that the inconvenience to a few officers was "inadequate and highly disproportional" when weighed against the interests of millions of citizens.

Madras High Court’s Key Observations

The court strongly emphasized that money laundering is a crime against the nation, warranting stringent investigation. It stated that ED raids were justified, necessary, and conducted in the public interest.

In response to allegations of political vendetta, the High Court clarified that courts cannot become "partakers in a political game" or speculate about political motives. It warned that labeling standard investigative procedures as harassment could open the "floodgates" for similar claims across the country, undermining the criminal justice system.

Consent Argument Rejected

One of the Tamil Nadu government’s key objections was that the ED conducted searches without prior consent from the state. The court dismissed this argument, calling it “completely illogical and bereft of conscience.” According to the judgment, investigative agencies must act discreetly to catch offenders off-guard and ensure effective enforcement of the law.

Grave Allegations Call for Deeper Probe

The High Court noted that prima facie allegations against TASMAC were serious and merited a comprehensive investigation. The ED believes the case could involve large-scale financial irregularities linked to the sale and distribution of liquor in Tamil Nadu.

As the case moves to the Supreme Court, it could shape the broader debate over federal powers, jurisdiction of central investigative agencies, and the balance between state autonomy and national interest.