‘Exceeded authority’: TN govt challenges ED’s Tasmac probe in Madras HC

The DMK government has moved Madras High Court against the Enforcement Directorate’s (ED) investigation into the alleged scam involving the Tamil Nadu State Marketing Corporation Ltd (Tasmac), claiming that the central agency has exceeded its authority and infringed upon the state’s autonomy, thus igniting a new dispute on federal powers.

The Tamil Nadu government filed the writ petition in court this week, seeking to halt the alleged money-laundering probe into Tasmac, which holds a monopoly over liquor sales in the state. In it, the state has contended that the ED’s investigation, which began with raids on Tasmac’s Chennai headquarters from March 6 to March 8, lacks a legal basis.

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Violation of due process

The petition claims the searches were conducted without proper warrants, officials were held for extended periods, and documents were confiscated in violation of the due process. The government has argued that these actions undermine its authority to oversee excise matters and state revenues, which are fundamental aspects of state governance.

During the three-day operation, ED teams interrogated senior Tasmac officials and seized corporate documents while digital forensic experts extracted data from devices—actions the government has criticized as “intrusive” and “unwarranted” in the petition.

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Women harassed, says plea

Tasmac officials have claimed they received no advance notice or clear rationale for the actions taken. They have also alleged that Tasmac employees were harassed, with some, including female staff, being unlawfully detained. The women allegedly faced particularly aggressive behaviour from the agency officials.

The petition has emphasised the absence of any evidence linking Tasmac to any “proceeds of crime” as defined by the Prevention of Money Laundering Act (PMLA), 2002, characterizing the ED’s actions as a baseless “roving enquiry”.

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What government has sought

The Tamil Nadu government has requested a writ of mandamus (an order instructing government servants to perform their duties) from the Madras High Court to put an end to what it has described as unwarranted harassment by the ED.

Additionally, it has sought a writ of declaration to invalidate the legality of the searches and seizures, claiming that these actions infringe upon the rights and privacy of Tasmac employees.

The state has argued that the ED’s overreach has disrupted administrative operations and established a troubling precedent for central agencies interfering in state-run enterprises.

The Madras High Court is expected to hear the petition on Thursday (March 20).