Supreme Court Stays ED Probe Into Tamil Nadus TASMAC; Issues Notice To Agency

The Supreme Court on Thursday suspended all of the present investigations by means of the Enforcement Directorate (ED) into suspected monetary improprieties at Tamil Nadu’s state-owned liquor distribution outlet, the Tamil Nadu State Marketing Corporation (TASMAC).

A bench of Chief Justice of India B.R. Gavai and Justice A.G. Masih additionally issued a understand to ED, in conjunction with significantly criticising the company for what it had termed an overreach in contemporary circumstances. “Your ED has been crossing all limits, Mr. Raju,” the bench stated to Additional Solicitor General (ASG) S.V. Raju, who was once representing the ED.

The court docket was once bearing in mind a Special Leave Petition (SLP) by means of TASMAC towards an April 23 order of the Madras High Court which had rejected 3 writ petitions introduced by means of the state and the company. The petitions sought to invalidate as unlawful the ED’s seek and seizure operation at TASMAC’s Chennai administrative center from March 6 to 8, 2025, in appreciate of a cash laundering case.

Throughout the lawsuits, the Supreme Court bench puzzled the jurisdictional foundation of the ED’s movements, in particular its transfer to start up lawsuits towards a government-owned company. “How can you register a case against a corporation? You may register against individuals, but how against a corporation?” the court docket puzzled.

The judges additionally noticed the loss of a well-defined predicate offence—a statutory requirement for a cash laundering case below the Prevention of Money Laundering Act (PMLA). “Where is the predicate offence?” requested the bench sharply.

ASG Raju answered that the predicate offence had a multi-crore cash laundering nexus and that due procedure was once adopted by means of the ED. Nevertheless, the bench reiterated its alarms in regards to the widening powers of the company and manner.

Senior legal professionals Kapil Sibal and Mukul Rohatgi, showing for TASMAC and its officials, complained towards ED for invading privateness and felony procedures by means of cloning cell phones and confiscating private telephones within the absence of right kind authority. “There is something called privacy,” Rohatgi emphasized. Sibal additionally requested the court docket to chorus from permitting the company to make use of any knowledge received from the confiscated units.

The Supreme Court’s transfer follows weeks after it had prior to now declined to believe a plea by means of the Tamil Nadu authorities for the switch of the case from the Madras High Court. At that point, the High Court had censured the state for “insulting” the judiciary and practising “forum shopping.”

The case is now scheduled to be heard additional, with the ED desiring to document its reaction to the attention served by means of the court docket.