The court directed ED to explain the reasons for the search and to provide details of the cases registered against TASMAC.
Published Mar 20, 2025 | 2:51 PM ⚊ Updated Mar 20, 2025 | 2:51 PM
Madras High Court. (Wikimedia)
Synopsis: The state argued that the ED search was in violation of he federal structure of the Constitution, and sought a halt to it. The high court, which asking ED’s response, directed the central agency to halt all proceedings against TASMAC.
The Madras High Court has directed the Enforcement Directorate (ED) to respond to a petition filed by the Tamil Nadu government to declare the search conducted by the central agency at the TASMAC headquarters as illegal and unconstitutional.
While seeking the ED’s response, the court asked the central agency to halt all actions against the Tamil Nadu State Marketing Corporation (TASMAC).
The court also directed ED to explain the reasons for the search and to provide details of the cases registered against TASMAC.
The ED had searched the TASMAC headquarters from 6 to 8 February and alleged that there were irregularities in the procurement of liquor, issuance of bar licences, and transportation of liquor, resulting in a loss of over ₹1,000 crore.
Breach of Constitution
The petition challenging the search said that it was conducted without the permission of the state government and was in violation of the federal structure of the Constitution.
The ED argued that the search was conducted under the provisions of the Prevention of Money Laundering Act (PMLA) and that the state government had no jurisdiction to challenge the search.
The court posted the matter for further hearing on 25 March and directed the ED to file a detailed counter-affidavit. The court has also directed the ED not to take any further action in the matter until then.
During the hearing, the Additional Solicitor General, ARL Sundaresan, appearing for the ED, denied that the search was conducted at night and stated that everyone was allowed to leave after the search was completed.
However, the judges questioned how the search was conducted and asked the ED to explain the reasons for conducting the search. The judges also asked the ED to provide details of the cases registered against TASMAC.
The court has directed the ED to file a detailed counter-affidavit and to provide all relevant documents and information.
Earlier, the ED said it had unearthed an alleged ₹1,000 crore corruption scam involving TASMAC following raids across multiple districts in the state on 6 March.
The raids were conducted under the PMLA, 2002, and resulted in the seizure of documents linked to bribery, tender manipulation, and illicit financial transactions, the agency said.
In response to the allegations, Electricity, Prohibition, and Excise Minister V Senthil Balaji said the ED’s charges had no basis and that was a generalised allegation. He further stated that “legal action will be taken in the matter.”
