ED violating Constitution, crossing all limits: Supreme Court stays PMLA probe in TASMAC case

• Supreme Court slams ED, stays PMLA probe in TASMAC case.
  
• CJI Gavai: “ED is crossing all limits, violating Constitution.”
  
• Tamil Nadu challenges Madras HC order allowing ED probe in ₹1,000 crore scam.
  

In a significant development, the Supreme Court on Thursday slammed the Enforcement Directorate (ED) for its raids at the headquarters of Tamil Nadu State Marketing Corporation (TASMAC) and stayed the action by the central agency in the money laundering case initiated by it in connection with the matter.

The bench of Chief Justice of India BR Gavai and Justice Augustine George Masih said the ED was crossing all limits and acting in violation of the Constitution by initiating action against a government body.

“How can this offence be against the corporation? You may register against individuals.. A criminal matter against the corporation? Your ED [Enforcement Directorate] is crossing all limits,” – CJI Gavai

The top court issued notice to ED on Tamil Nadu government’s petition against the Madras High Court order which had allowed the ED probe to proceed in the alleged ₹1,000 crore scam in TASMAC.

“Stay on the proceeding. When there are FIRs against officers why is ED coming here? Where is the predicate offence?? You (ED) put an affidavit,” – Supreme Court

The Bench added that the ED is totally violating the “federal structure of Constitution”.

• Senior Advocate Kapil Sibal (for Tamil Nadu):
  
  
  “ED comes into picture in 2025 and raids the corporation head office. Phones taken…everything taken. This is an issue of privacy.”
  
  
• Senior Advocate Mukul Rohatgi (for TASMAC):
  
  
  “All phones have been wiped out. Is there something such as privacy.”
  Assisted by Advocate Mishra Rohatgi.
  
  
• ED’s Representation:
  Additional Solicitor General SV Raju and Special Counsel Zoheb Hossain represented ED.
  ASG Raju stated he will file a response.
  

The case concerns raids conducted by the ED from March 6 to March 8 at TASMAC’s headquarters on allegations of:

• Overpricing of liquor bottles
  
• Tender manipulation
  
• Bribery
  
• Financial irregularities exceeding ₹1,000 crores
  

The ED suspected money laundering based on 41-46 FIRs filed by the State government or TASMAC against officials over the years. The DMK-led State government and TASMAC called the raids illegal and accused ED of power overreach.