The Madras High Court decision upheld the Enforcement Directorate’s authority to investigate allegations of corruption and money laundering within the TASMAC, File photo
ED defends TASMAC HQ raid in Madras High Court
The ED, represented by Additional Solicitor General SV Raju, said the search was based on 46 police FIRs alleging bribery, inflated liquor prices
The Enforcement Directorate (ED) justified its raid on the Tamil Nadu State Marketing Corporation (TASMAC) headquarters before the Madras High Court on Wednesday (April 16).
Also read: ED action on state-run liquor retailer: TN, TASMAC withdraw transfer pleas in SC
The ED, represented by Additional Solicitor General SV Raju, said the search was based on 46 police FIRs alleging bribery, inflated liquor prices, and manipulated employee postings by TASMAC officials, some dating back to 2017. These pointed to possible money laundering, with evidence likely at the headquarters.
Accusation of 'roving inquiry'
The Bench of Justices SM Subramaniam and K Rajasekaran, questioned why the headquarters was targeted when FIRs covered various locations. Raju argued that under the Prevention of Money Laundering Act (PMLA), the ED can search any premises based on suspicion alone, claiming the raid uncovered irregularities worth Rs 1,000 crore.
Also read: TASMAC issue: Madras HC directs ED not to proceed further
Petitioners, represented by Advocate General PS Raman, accused the ED of a “roving inquiry” to tarnish high-profile reputations before Tamil Nadu elections. They alleged the state was not informed, FIRs were not shared, and employees, including women, were detained improperly.
The court adjourned the case to April 17 for further hearing, seeking more clarity on the ED’s actions.