Today, On 22nd May, The Supreme Court has stayed the ED’s PMLA probe into the Rs.1,000 crore TASMAC case, stating the agency is “violating the Constitution” and “crossing all limits,” while hearing Tamil Nadu’s challenge to the Madras High Court order.
New Delhi: The Supreme Court on Thursday criticized the Enforcement Directorate (ED) for its raids at the Tamil Nadu State Marketing Corporation (TASMAC) headquarters and stayed the agency’s actions related to a money laundering case.
The bench, consisting of Chief Justice of India BR Gavai and Justice Augustine George Masih, stated that the “ED was crossing all limits and acting unconstitutionally by taking action against a government body. “
Also Read: Case Analysis: TASMAC v. Enforcement Directorate (ED)
The court issued a notice to the ED regarding the Tamil Nadu government’s petition challenging a Madras High Court order that permitted the ED’s investigation into an alleged Rs.1,000 crore scam involving TASMAC.
CJI Gavai remarked,
“How can this offence be against the corporation? A criminal matter against the corporation. Your Enforcement Directorate is crossing all limits,”
The Court granted a stay on the proceedings and requested the agency to clarify what the predicate offence was.
The Court stated,
“Stay on the proceeding. When there are FIRs against officers, why is the ED coming here? Where is the predicate offence?? ED put an affidavit,”
Also Read: Ex-ED Officer Vs ED | Delhi HC Declines Officer’s PIL Against ED & Section 66 PMLA
The bench reiterated that the ED is violating the Constitution.
Additional Solicitor General SV Raju, representing the ED, indicated that he would file a response.
The case involves raids conducted by the ED from March 6 to March 8 at TASMAC’s headquarters, based on allegations that TASMAC officials were involved in overpricing liquor bottles, manipulating tenders, and bribery, resulting in financial irregularities exceeding Rs.1,000 crores.
The ED suspected money laundering based on allegations from approximately 41-46 first information reports (FIRs) filed by the State government or TASMAC against its officials over the years.
Also Read: Tamil Nadu Withdraws Supreme Court Plea to Transfer ED-TASMAC Case
The DMK-led State government and TASMAC have accused the ED of overstepping its authority and labeled the March raids as illegal.
They challenged the legality of the ED’s actions in the Madras High Court, which dismissed their plea, leading the matter to the Supreme Court today.
Case Title : State of Tamil Nadu vs Directorate of Enforcement T.P.(Crl.) No. 309/2025 & TASMAC vs Directorate of Enforcement T.P.(Crl.) No. 306-307/2025
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