'ED is crossing all limits': Supreme Court stays agency's probe into TASMAC, seeks explanation

The Supreme Court on Thursday came down heavily on the Enforcement Directorate (ED), accusing the central agency of "crossing all limits" in its probe against Tamil Nadu's state-run liquor corporation, TASMAC. According to Bar and Bench, the top court stayed the ED's proceedings in the money laundering case and issued a notice to the agency, asking it to explain the basis for its action.

The bench of Chief Justice of India BR Gavai and Justice Augustine George Masih was hearing the Tamil Nadu government's plea challenging a Madras High Court order that had allowed the ED's probe into an alleged Rs 1,000 crore scam in TASMAC to continue. "How can this offence be against the corporation? A criminal matter against the corporation. Your Enforcement Directorate is crossing all limits,” CJI Gavai remarked, as reported by Bar and Bench. 

The top court questioned the very foundation of the ED's case, asking the agency to identify the predicate offence that justified invoking the Prevention of Money Laundering Act (PMLA). "Stay on the proceeding. When there are FIRs against officers why is ED coming here? Where is the predicate offence?? ED put an affidavit,” the bench ordered, granting an interim stay on the ED’s actions while directing the agency to file its response.

The ED had conducted raids between March 6 and 8 at TASMAC's headquarters over allegations of financial irregularities, including overpricing of liquor, tender manipulation, and bribery. These allegations were based on 41 to 46 FIRs registered by state agencies over the years against TASMAC officials.

However, the DMK-led Tamil Nadu government has accused the ED of exceeding its jurisdiction and termed the raids unconstitutional. The Madras High Court had earlier refused to stay the ED's probe, prompting the state to move the Supreme Court. 

Appearing for the ED, Additional Solicitor General SV Raju said the agency would file its affidavit in response to the apex court's observations.