Supreme Court Stays ED's Controversial Probe into Tamil Nadu's TASMAC

The Supreme Court has halted the Enforcement Directorate’s investigation into TASMAC over alleged corruption. The court criticized the ED for overstepping federal boundaries. The ED's actions, closely monitored by political opponents and the state, have raised concerns about misuse of the Prevention of Money Laundering Act.


Devdiscourse News Desk | New Delhi | Updated: 22-05-2025 16:48 IST | Created: 22-05-2025 16:48 IST
Supreme Court Stays ED's Controversial Probe into Tamil Nadu's TASMAC
This image is AI-generated and does not depict any real-life event or location. It is a fictional representation created for illustrative purposes only.
  • Country:
  • India

The Supreme Court has put a hold on the Enforcement Directorate's probe into Tamil Nadu's state-run liquor retailer, TASMAC, over corruption charges in wine shop licensing. This development comes amid accusations that the ED is overreaching its jurisdiction, thus undermining federal governance.

A bench led by Chief Justice B R Gavai criticized the ED's actions as crossing 'all limits', observing that the probe agency has been previously censured for misapplying the Prevention of Money Laundering Act. Senior advocates representing TASMAC asserted that the state is already prosecuting alleged illegalities and named no TASMAC staff as accused in first information reports.

The Tamil Nadu government alongside TASMAC argued that the ED's extensive searches and seizures lack lawful basis, especially given the absence of direct accusations against TASMAC. They contested an earlier Madras High Court decision supporting the ED, highlighting a breach of constitutional rights.

(With inputs from agencies.)

Give Feedback