TN moves SC seeking transfer of pleas against ED’s Tasmac raids from Madras HC

The development marks an escalation in the tussle between the state government and the central investigative agency, raising questions about jurisdiction, federal autonomy, and the political undertones of the case.

Also read: ED ‘unravels’ Rs 1,000-crore liquor scam in TN, confirms The Federal story

Why TN wants case transferred?

The Tamil Nadu government’s decision to seek Supreme Court intervention stems from its dissatisfaction with the proceedings at the Madras High Court, where it had originally filed petitions contesting the Enforcement Directorate (ED)’s actions. The state government argues that the raids, conducted as part of an investigation into alleged irregularities, overstep the ED’s authority and infringe upon Tamil Nadu’s administrative rights.

Tamil Nadu State Marketing Corporation (Tasmac), the state-run liquor retail monopoly, which is a major revenue-generating entity for the state, operates over 4,500 liquor outlets and has long been under scrutiny for alleged financial mismanagement and corruption.

Also read: Tasmac 'scandal': TN minister Senthil Balaji denies allegations, says will fight legally

Govt wants case moved

According to sources familiar with the matter, the ED launched its searches following reports of discrepancies in Tasmac’s operations, including potential money laundering and illicit financial flows. The agency’s actions are believed to be part of a broader probe into economic offenses linked to influential figures in the state. However, the Tamil Nadu government has labelled the raids as “politically motivated” and an attempt by the central government to undermine its authority. In its plea to the Supreme Court, the state government has requested that the case be transferred to another high court, or to the apex court, to ensure an impartial hearing.

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

'Strategic attempt'

A senior advocate said the Tamil Nadu government’s move reflects a strategic effort to distance the case from what it perceives as a potentially unfavourable judicial environment in the Madras High Court. “This is not an uncommon request,” said a Chennai-based constitutional law expert. “No court will stop the basic investigation of any central agency. The state should face the ED sleuths, instead of stoppages.”

The ED, for its part, has defended its actions, asserting that the searches were conducted within the framework of the Prevention of Money Laundering Act (PMLA) and is based on credible leads. The agency has refrained from divulging specific details of the investigation, citing its ongoing nature, but officials have hinted at uncovering substantial evidence during the raids. The confrontation between the ED and the Tamil Nadu government adds to a growing list of disputes between state administrations and central agencies, a trend that has sparked debates about the balance of power in India’s federal structure.

Also read: DMK MP Jagathrakshakan in ED crosshairs over Rs 20-crore ‘suspicious’ transaction

DMK-BJP spar over ED probe

Political reactions to the development have been swift. The ruling DMK in Tamil Nadu has accused the BJP-led central government of using the ED to target opposition-ruled states. “This is a clear case of vendetta politics,” said a senior DMK leader, speaking on condition of anonymity. “The ED has no business meddling in state affairs without solid proof.” Meanwhile, Tamil Nadu BJP leaders have dismissed these claims, arguing that the state government is attempting to shield corrupt practices under the guise of federalism.

Also read: Case, raids on Tasmac were no fishing expedition, ED tells Madras HC

All eyes on SC

As the Supreme Court prepares to hear Tamil Nadu’s plea, all eyes will be on whether the apex court deems the transfer request valid. A decision favouring the state could set a precedent for similar cases, while a rejection might embolden central agencies to pursue investigations with greater vigour. For now, the standoff between Chennai and New Delhi continues to simmer, with Tasmac at the heart of a legal and political storm that shows no signs of abating.