Madras HC upholds ED's raids on Tamil Nadu liquor corporation
What's the story
The Madras High Court has upheld the Enforcement Directorate (ED)'s rights to conduct raids at the head office of the Tamil Nadu State Marketing Corporation (TASMAC). The verdict came after TASMAC and the state government challenged the legality of the raids conducted from March 6 to March 8. The court rejected their petitions, paving the way for ED to continue its investigation under the Prevention of Money Laundering Act (PMLA).
Political bias
Court dismisses claims of politically motivated raids
The court dismissed the allegations by the state and TASMAC that the searches were politically motivated. It said such things were out of its jurisdiction. "Whether a court can go and examine if political forces are at play or be a partaker in the political game? Definitely not..Are courts the place to decide this?" the bench asked. It added it could only look into the evidence placed before it, irrespective of political affiliations.
Crime against nation
Court emphasizes seriousness of money laundering
The court also highlighted that money laundering is a serious crime against the nation. It said little inconveniences can't be a reason to stop necessary raids. "It is impractical to expect a highly comfortable and pleasant ambience for anybody who has to comply with the laws of a country," it said. The bench then proceeded to criticize the Tamil Nadu government and TASMAC for approaching the court after a "mere search" rather than carrying out their public duties.
Investigation details
ED's investigation linked to financial irregularities
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. As many as 41-46 FIRs have been filed against TASMAC officials over the years. However, the DMK-led administration and the state-owned TASMAC have accused the ED of an abuse of its authority and declared the March raids illegal.