‘ED crossing all limits’: SC stays money laundering probe against TASMAC
NEW DELHI, MAY 22 : The Supreme Court on Thursday criticised the Enforcement Directorate (ED) for “crossing all limits” as it stayed the agency’s money laundering probe into Tamil Nadu state-run liquor retailer TASMAC.
A bench of CJI BR Gavai and Justice Augustine George Masih came down heavily against the ED’s move to initiate action and subsequent raids against a government-run body.
The bench issued notices to the ED on petitions filed by the Tamil Nadu government and the Tamil Nadu State Marketing Corporation (TASMAC) challenging recent raids. It also sought the ED’s reply and scheduled the matter for further hearing after the vacation, without fixing a specific date.
SC also observed that ED’s actions violated the federal structure, adding that the probe against TASMAC will not proceed in the meantime.
“Your Enforcement Directorate is crossing all limits. How can this offence be against the corporation?… You are totally violating the federal structure of the country,” the bench told Additional Solicitor General (ASG) SV Raju, appearing for the probe agency.
The ASG opposed the order, saying the issue involved corruption over Rs 1,000 crore and the ED is not crossing the limits “at least in this case.”
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The bench took note of submissions by senior advocates Kapil Sibal and Amit nand 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 has entered the picture, raiding TASMAC’s headquarters and taking the managing director into custody.
“How can you raid the state-run TASMAC?” the bench asked.
Former Attorney General Mukul Rohatgi, also appearing for the state, submitted that the ED had taken cloned copies of phones belonging to TASMAC officials, violating their privacy and disregarding court guidelines.
The apex court made these scathing remarks after hearing a petition by the Tamil Nadu government challenging the Madras High Court’s April 23 order dismissing its and TASMAC’s petitions against the ED raids conducted between April 6 and 8, including at TASMAC headquarters.
The HC bench had observed that the allegations against TASMAC were grave and warranted deeper investigation under the Prevention of Money Laundering Act (PMLA).
Earlier, the ED claimed it unearthed evidence of large-scale irregularities involving Rs 1,000 crore through fraudulent transactions by breweries and bottling units, with unaccounted cash siphoned off and used as kickbacks to secure contracts and obtain more supply orders from TASMAC during raids in March.
-PTI
