Supreme Court Stays ED Probe into Tamil Nadu's TASMAC Liquor Scam

The Supreme Court on Thursday put a halt to the ongoing investigation led by the Enforcement Directorate (ED) into TASMAC, a state-controlled enterprise overseeing liquor sales in Tamil Nadu. This decision was rendered by a bench chaired by Chief Justice of India B R Gavai, who criticized the ED's conduct, suggesting that the agency was overstepping its bounds.

Chief Justice Gavai stated that the Enforcement Directorate should direct its probe at individuals, not organizations, underscoring the limits of the ED's jurisdiction. This ruling arose in response to an appeal by the Tamil Nadu government against a decision by the Madras High Court, which had dismissed their challenge to the ED's raids on TASMAC premises in connection with an alleged Rs 1000 crore fraud.

Senior Advocate Kapil Sibal, representing Tamil Nadu, highlighted that the state had filed 41 FIRs between 2014 and 2021 against liquor outlet operators over corruption. However, the ED only initiated its investigation in 2025, conducting raids at TASMAC headquarters and confiscating electronic devices of several officials. During the hearing, Senior Advocate Mukul Rohatgi contended that the ED's seizure of phones was an invasion of privacy. The Court has now ordered the ED to respond to the Tamil Nadu government's plea, suspending the investigation in the interim.

(With inputs from agencies.)