• Source:JND
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TASMAC ED Raids: The Supreme Court on Thursday came down heavily on the Enforcement Directorate and stayed its money laundering probe against Tamil Nadu State Marketing Corporation (TASMAC) over alleged corruption in grant of wine shop licences. The top court also issued notice to the ED over raids on the state-run liquor shops in Tamil Nadu, saying that the federal agency is "crossing all limits" and "violating the federal concept of governance."

"Enforcement Directorate is violating federal principle, how can it raid TASMAC," the top court asked while hearing pleas filed by the Tamil Nadu government and TASMAC against ED raids carried out in March and earlier this month.

"You may register cases against individuals... but corporations? Your ED is passing all limits! Issue notice, returnable after vacation. Meanwhile, stay granted of further proceedings," a bench led by Chief Justice BR Gavai told the ED.

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Additional Solicitor General SV Raju, appearing for the ED, opposed the order and said that the issue involved corruption over Rs 1,000 crore and the ED is not crossing the limits “at least in this case.”

The bench took note of the submissions of senior advocates Kapil Sibal and Amit Anand Tiwari that the state itself has lodged over 40 FIRs in cases related to allotment of liquor shop licences from 2014 and now the ED jumps in the picture and raids the TASMAC.

This came after the DMK-led Tamil Nadu government moved the Supreme Court, challenging an April 23 order of the Madras High Court, which gave a go-ahead to the ED to proceed with its action under the Prevention of Money Laundering Act (PMLA).

The Madras High Court in its order had observed that the offence of money laundering was a crime against the people of the nation and said that the arguments of TASMAC and the state government alleging harassment of its officers, who were detained for hours during the searches, were "inadequate and highly disproportional".

The court said that the ED raids were in the interest and benefit of the nation, adding that the allegations and complaints against TASMAC were grave and required a deeper probe.

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"If a court accepts such a search conducted by an investigating agency was harassment, then it can lead to a floodgate of litigations where each and every citizen of this country bound by the rule of law would start alleging harassment on every procedure detailed under our criminal procedure system," the Madras HC had said.

DMK Welcomes Supreme Court Order

Welcoming the Supreme Court's stay on ED action against TASMAC, senior DMK leader RS Bharathi said that the top court's order is a "big blow" to the BJP's efforts to malign the Tamil Nadu government, calling the central probe agency a "blackmailing organisation."

"In Tamil Nadu, the M K Stalin-led DMK government that assumed office in 2021 has been gaining popularity ever since and the Chief Minister's stature has been rising. Unable to digest this and the DMK alliance's electoral triumph after 2021, the ED was used to malign the DMK and the BJP leaders used to make all kinds of charges," he said.

"The SC staying the ED probe against TASMAC is a big blow to such things and is in deference to the sentiments of the people of Tamil Nadu. We welcome the (SC) order. The union government should stop misusing ED at least after this," the former MP added.