'ED crossing all limits': SC stays investigation against TN's TASMAC
What's the story
The Supreme Court on Thursday stayed the Enforcement Directorate's (ED) investigation and raids at the Tamil Nadu State Marketing Corporation (TASMAC).
The decision came while hearing a petition filed by the Tamil Nadu government, challenging an order of the Madras High Court, which had earlier dismissed its plea against the ED's actions.
Chief Justice of India BR Gavai and Justice AG Masih were on the bench that heard this case.
Court proceedings
CJI questions ED's actions, stays further proceedings
During the hearing, CJI Gavai questioned Additional Solicitor General SV Raju about the ED's actions.
He asked how an offense could be made against a corporation and said, "Your ED is crossing all limits."
Senior Advocate Kapil Sibal, representing Tamil Nadu, argued that the state had already filed 41 FIRs against individuals for corruption between 2014-21, but the ED intervened in 2025 to raid TASMAC headquarters.
Federal concerns
ED's actions seen as violation of federal structure
CJI Gavai also expressed concern over the ED's actions, saying they were violating the federal structure of the country.
Senior Advocate Mukul Rohatgi, appearing for the Tamil Nadu government-owned TASMAC, said the ED took cloned copies of officials' phones, violating their privacy.
The ED claimed it was investigating a ₹1,000 crore fraud case involving TASMAC and distillery companies siphoning off money through unaccounted cash transactions.
Previous ruling
High Court dismissed Tamil Nadu's plea against ED
On April 23, the Madras High Court had dismissed pleas from Tamil Nadu and TASMAC challenging ED's searches.
The court said money laundering is a crime against the nation and rejected claims of harassment during searches as "inadequate and highly disproportional."
But TASMAC and the state government argued that ED's actions were politically motivated.
Investigation details
ED's investigation follows allegations of corruption
The ED's probe stems from allegations that TASMAC officials have been overpricing liquor bottles, rigging tenders, and taking bribes.
These practices allegedly led to financial irregularities exceeding ₹1,000 crore.
Based on these allegations, ED raided TASMAC's headquarters from March 6 to March 8.
However, the DMK-led administration and TASMAC have accused the ED of an abuse of its authority and declared the March raids illegal.
As many as 41-46 FIRs have been filed against TASMAC officials over the years.