Supreme Court Halts ED Probe: A Clash Over Federalism and Governance

The Supreme Court has paused the Enforcement Directorate's probe into alleged corruption by Tamil Nadu's TASMAC over liquor shop licenses, citing violations of federal governance principles. The court criticized the ED's actions, emphasizing the state’s right to handle related legal matters, while opposition parties echoed concerns over misuse of power.


Devdiscourse News Desk | New Delhi | Updated: 22-05-2025 16:06 IST | Created: 22-05-2025 15:38 IST
Supreme Court Halts ED Probe: A Clash Over Federalism and Governance
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The Supreme Court on Thursday halted an Enforcement Directorate (ED) investigation into alleged corruption involving the Tamil Nadu State Marketing Corporation (TASMAC), which manages state-run liquor outlets. The probe into the granting of wine shop licenses drew criticism from the court for overstepping federal governance principles.

A bench led by Chief Justice B R Gavai emphasized the ED's alleged overreach in this case. The accusations against the ED include abusing the Prevention of Money Laundering Act (PMLA) to target political opponents. The court's decision came after a plea from the Tamil Nadu government challenging the ED's actions as constitutional violations.

Additional Solicitor General S V Raju defended the investigation, citing corruption concerns amounting to over Rs 1,000 crore. However, senior advocates argued that the state itself was already pursuing criminal charges. The Supreme Court's ruling underscores ongoing tensions surrounding the federal balance of power in India.

(With inputs from agencies.)

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