The Tamil Nadu government Today (April 4) asked the Supreme Court to shift TASMAC-related ED raid cases from the Madras High Court to another court. The move aims to ensure a fair hearing and avoid potential bias.
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NEW DELHI: The legal matter concerning the Tamil Nadu State Marketing Corporation (TASMAC) has now reached the Supreme Court of India. The Tamil Nadu government has asked the apex court to shift its ongoing petitions — which are currently being heard in the Madras High Court — to another High Court.
These petitions are directly related to the recent raids carried out by the Enforcement Directorate (ED) at TASMAC’s offices in Tamil Nadu.
A three-judge bench of the Supreme Court is handling the case. The bench includes Hon’ble Chief Justice Mr. Sanjiv Khanna, Hon’ble Mr. Justice Sanjay Kumar, and Hon’ble Mr. Justice K.V. Viswanathan.
During the court hearing, the Advocate representing the Tamil Nadu Government presented their request before the bench.
The lawyer representing the Tamil Nadu Government said:
“Your Lordships, we are requesting the Supreme Court to transfer our petitions… currently pending in the Madras High Court… to another High Court.”
To understand more, the Court asked:
“What are these petitions about?”
The Advocate replied:
“They relate to the ED’s searches at TASMAC offices in Tamil Nadu. We’ve challenged those searches in the Madras High Court.”
The bench then questioned:
“And why are you asking for the transfer?”
The lawyer clarified the reason, stating:
“We believe it would be better for another High Court to hear the matter, to ensure fairness and avoid any possible bias.”
After hearing this, the Court simply responded:
“Alright, we will consider…”
This entire issue started when the Enforcement Directorate (ED) conducted multiple raids at the TASMAC headquarters and several other places between March 6 and March 8, 2025. Following these searches, the Tamil Nadu government and TASMAC filed legal petitions in the Madras High Court.
In their petitions, they strongly questioned the legality of these ED actions. They claimed that the ED conducted the searches without proper permissions and violated legal procedures. The Tamil Nadu side also argued that the raids were politically motivated and were meant to damage the image of the state administration.
However, the Enforcement Directorate (ED) denied all these claims. In their official reply submitted in court, the ED said the raids were fully legal and based on strong intelligence about money laundering. They said the investigation involved not just TASMAC officials but also private companies. The ED alleged that TASMAC was trying to interfere in an honest and lawful investigation process.
During the earlier hearings in the Madras High Court, the judges also raised questions about TASMAC’s arguments. The High Court pointed out that even government agencies, including the state police, carry out late-night inspections if required. After this, the High Court adjourned the case for a final hearing on April 8, 2025.
The Tamil Nadu government’s latest request to the Supreme Court shows their concern about neutrality and justice in the case. They feel that moving the case to another High Court will ensure an unbiased decision and fair legal treatment.
The Supreme Court’s ruling on this transfer request will be very important and will likely affect both the future of TASMAC’s operations and the direction of the ED’s ongoing investigation.
PREVIOUSLY IN MADRAS HC
Two judges from the Madras High Court decided not to continue hearing the case related to the Enforcement Directorate (ED) raids on TASMAC (Tamil Nadu State Marketing Corporation).
The Bench included Justice MS Ramesh and Justice N Senthilkumar.
They informed that they are recusing, or stepping away, from the case.
They made the announcement before the day’s listed cases began.
They said clearly:
“That TASMAC matter, we are recusing ourselves, we are not taking. We have some reasons. Actually, we wanted it tomorrow, but we already signed the order (posting it today). Thereafter, we found we cannot take this matter. It will go before alternate Bench.”
This decision came after the Court had earlier shown strong disapproval of how ED officials carried out the raids. On March 20, the judges expressed concern over how the raids were done by ED at the TASMAC offices. TASMAC is the government agency that controls the sale and distribution of alcohol in Tamil Nadu.
During the earlier hearing, the Court was unhappy that ED officials did not properly explain the reason for the raid to TASMAC staff and even allegedly stopped the employees from moving freely. This led the judges to question the conduct of the ED officers.
The Court asked the ED to give a proper reply to the petitions filed by TASMAC and the Tamil Nadu State Government. In the meantime, the Court also gave an oral direction to ED: not to take any strict or forceful action against TASMAC staff until further orders.
But on March 25, the judges informed the lawyers that they would no longer hear this matter. So now, a new Bench of judges will take up the case and continue the proceedings.
The case is related to ED raids that happened at TASMAC offices between March 6 and March 8. These raids were carried out in different places, including TASMAC’s headquarters in Chennai and several distilleries and bottling plants across Tamil Nadu.
TASMAC has argued in court that ED’s actions were too harsh and went beyond their legal power. They said ED officers forcefully entered their premises and violated employee rights, even taking away their mobile phones without proper reason.
The ED has accused TASMAC and its associated distilleries of financial crimes worth more than ₹1,000 crore. According to ED, there were multiple issues:
- Tenders were manipulated
- Unaccounted cash was being handled
- Retail shops were charging more than the legal MRP
Specifically, ED said that TASMAC liquor shops were charging Rs 10 to Rs 30 extra per liquor bottle, which is above the fixed retail price. This, they claim, was a planned and organised effort to make illegal profits.
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After these raids, the ED claimed they found strong proof of corruption and collusion between distilleries and TASMAC officers. They say that this setup allowed state money to be misused and that big bribes were given to TASMAC staff so that certain distilleries could get supply orders.
The ED also said that there were serious problems in how transport and bar licenses were given, hinting at corruption in every level of the supply chain.
This issue has turned political as well. The ruling party in Tamil Nadu, the Dravida Munnetra Kazhagam (DMK), has said that ED is being misused by the Central Government for political reasons. On the other hand, the Bharatiya Janata Party (BJP) denied this, saying that the corruption should be thoroughly checked and those responsible must be punished.
TASMAC then filed a case in the Madras High Court, asking for protection against ED’s “harassment” during their investigation. The Tamil Nadu Government also filed a case, saying that ED should not have entered the TASMAC premises without first getting permission from the State Government.
During the March 20 hearing, the State’s lawyers argued that the way ED carried out the raids went against federal values, as law and order is a State subject in India.
The Court also seemed shocked by the claim that ED “took control” of TASMAC offices and made employees stay for long hours.
The TASMAC officials said in court that some women employees were sent home only at 1 AM and then asked to return again by 8 or 9 AM.
The judges then questioned ED directly and asked:
“Is it not an alarming situation? We can understand if you have specific input. But can you keep the entire office under your control for hours together?”
ED’s lawyer, Additional Solicitor General (ASG) AR L Sundaresan, strongly rejected these claims. He told the Court:
“No one was kept captive, everyone was allowed to go and come back.”
So now, as the original judges have stepped away from the case, the matter will be taken up by a different Bench in the Madras High Court in the coming days.
The case will continue to be closely watched because it involves serious questions about federal rights, employee treatment, and alleged corruption at high levels in the state’s liquor distribution network.
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