NEW DELHI: The Supreme Court on Thursday slammed the Enforcement Directorate over Tamil Nadu State Marketing Corporation (Tasmac) raids in connection with financial irregularities and said that the ED is crossing all limits.
A bench comprising Chief Justice of India B R Gavai and Justice A G Masih, expressed strong concerns about ED's actions, repeating thrice that the agency was exceeding boundaries. "ED is crossing all limits," said the apex court before staying proceedings post-ED raid on state-run liquor retailer.
The law officer 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."
The bench took note of the submissions of 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 jumps in the picture and raids the TASMAC.
"Enforcement Directorate is violating federal principle, how can it raid Tasmac," asked the SC.
The bench granted ED a fortnight to submit their response. The enforcement agency maintained that the case involved substantial financial misconduct.
The stay was granted in response to a plea filed by the Tamil Nadu government challenging the ED’s raids on Tasmac premises.
ED conducted extensive searches and interrogated IAS officer S Visakan, the managing director of Tasmac, in connection with suspected financial irregularities. The investigation began at 6 am with raids at his Manapakkam residence and multiple locations across Chennai.
ED officials, accompanied by CRPF personnel, carried out searches at various premises in Besant Nagar, Choolaimedu, Anna Salai, Teynampet, and T Nagar, targeting both residences and business establishments. Film producer Akash Baskaran's house in Teynampet was also searched, though ED did not disclose the connection to the investigation.
Following an eight-hour search at his residence, ED officials took Visakan and his wife to their Nungambakkam office for questioning. Visakan was later returned to his Manapakkam residence around 9 pm, where interrogation continued.
The ED had previously summoned Visakan twice, but these summons were not complied with, according to agency sources. In March, after searching the Tasmac head office, distilleries, and breweries, the agency suspected a Rs 1,000 crore scam involving illegal cash generation through inflated bottle prices from manufacturers.
The investigation was initiated under the Prevention of Money Laundering Act (PMLA), based on FIRs registered by the Directorate of Vigilance and Anti-Corruption (DVAC) between 2016 and 2021. During this period, Visakan was detained at the Tasmac office for approximately two days.
Tasmac's legal attempt to challenge the ED searches was unsuccessful, with the Madras High Court rejecting their plea to declare the searches illegal.
A bench comprising Chief Justice of India B R Gavai and Justice A G Masih, expressed strong concerns about ED's actions, repeating thrice that the agency was exceeding boundaries. "ED is crossing all limits," said the apex court before staying proceedings post-ED raid on state-run liquor retailer.
The law officer 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."
The bench took note of the submissions of 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 jumps in the picture and raids the TASMAC.
"Enforcement Directorate is violating federal principle, how can it raid Tasmac," asked the SC.
The bench granted ED a fortnight to submit their response. The enforcement agency maintained that the case involved substantial financial misconduct.
The stay was granted in response to a plea filed by the Tamil Nadu government challenging the ED’s raids on Tasmac premises.
ED conducted extensive searches and interrogated IAS officer S Visakan, the managing director of Tasmac, in connection with suspected financial irregularities. The investigation began at 6 am with raids at his Manapakkam residence and multiple locations across Chennai.
ED officials, accompanied by CRPF personnel, carried out searches at various premises in Besant Nagar, Choolaimedu, Anna Salai, Teynampet, and T Nagar, targeting both residences and business establishments. Film producer Akash Baskaran's house in Teynampet was also searched, though ED did not disclose the connection to the investigation.
Following an eight-hour search at his residence, ED officials took Visakan and his wife to their Nungambakkam office for questioning. Visakan was later returned to his Manapakkam residence around 9 pm, where interrogation continued.
The ED had previously summoned Visakan twice, but these summons were not complied with, according to agency sources. In March, after searching the Tasmac head office, distilleries, and breweries, the agency suspected a Rs 1,000 crore scam involving illegal cash generation through inflated bottle prices from manufacturers.
The investigation was initiated under the Prevention of Money Laundering Act (PMLA), based on FIRs registered by the Directorate of Vigilance and Anti-Corruption (DVAC) between 2016 and 2021. During this period, Visakan was detained at the Tasmac office for approximately two days.
Tasmac's legal attempt to challenge the ED searches was unsuccessful, with the Madras High Court rejecting their plea to declare the searches illegal.
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