{"id":7063,"date":"2025-05-23T12:34:00","date_gmt":"2025-05-23T07:04:00","guid":{"rendered":"https:\/\/lawfultalks3.selfst.art\/sc-slams-ed-over-tasmac-raids-flags-federalism-violation\/"},"modified":"2026-07-21T17:29:18","modified_gmt":"2026-07-21T11:59:18","slug":"sc-slams-ed-over-tasmac-raids-flags-federalism-violation","status":"publish","type":"post","link":"https:\/\/lawfultalks3.selfst.art\/?p=7063","title":{"rendered":"SC Slams ED Over TASMAC Raids, Flags Federalism Violation"},"content":{"rendered":"\n

"ED is crossing all limits. You are totally violating the federal structure of the country," <\/span><\/em><\/strong><\/span>stated th<\/span>e Chief Justice of India<\/span><\/strong><\/span>, <\/span>B.R. Gavai,<\/span><\/strong><\/span> while issuing a stay on the Enforcement Directorate’s (ED) investigation and raids against the Tamil Nadu State Marketing Corporation (TASMAC).The bench of <\/span>CJI B.R. Gavai and Justice A.G. Masih <\/span><\/strong><\/span>was considering petitions submitted by the State of Tamil Nadu and TASMAC, which contested the Madras High Court's dismissal of their challenge to the Enforcement Directorate's searches at TASMAC's headquarters.<\/span><\/span><\/span><\/p>\n \n \n \n

<\/span><\/span><\/span><\/p>\n \n \n \n

Appearing for the State of Tamil Nadu, Senior Advocate Kapil Sibal submitted that TASMAC is a corporation responsible for allotting liquor outlets, and during the course of its functioning, it was discovered that certain individuals who had been granted these outlets were accepting cash. He explained that, in response, the State had independently registered 41 FIRs between 2014 and 2021 against those individuals, and not against the corporation itself. However, he pointed out that in 2025, the Enforcement Directorate entered the picture and conducted raids on TASMAC and its headquarters, during which all phones and devices were seized and cloned.<\/span><\/span><\/span><\/p>\n \n \n \n

It was at this juncture the bench questioned Additional Solicitor General SV Raju,<\/span><\/span><\/span><\/p>\n \n \n \n

"You may register against the individuals, but against the corporation a criminal matter? Your ED is crossing all limits, Mr. Raju"<\/span><\/em><\/strong><\/span> <\/span><\/span><\/p>\n \n \n \n

Further, violation of privacy was also pointed out by Senior Advocate Sibal and Senior Advocate Mukul Rohatgi (appearing for the TASMAC). It was submitted that ED has cloned the phones of the TASMAC officials and thereby the ED shall be restricted from the usage of the data collected from such devices.<\/span><\/span><\/span><\/p>\n \n \n \n

However, the Court was of the opinion that an interim relief has been provided; thus, no further directions shall be passed.<\/span><\/span><\/span><\/p>\n \n \n \n

Per Contrary, it was the claim of the ASG that there is a fraud of 1000 Crore however, the bench pointed out the existing actions taken by the State and the absence of a predicate offense, thereby criticizing the conduct of the ED.<\/span><\/span><\/span><\/p>\n \n \n \n

Standing firm on the claim, ASG submitted a larger conspiracy of major fraud and hinted that politicians are being protected, which was being investigated by ED and stated that a detailed reply will be filed.<\/span><\/span><\/span><\/p>\n \n \n \n

The matter is likely to be listed for further hearing on 15\/07\/2025 (as per SC website)<\/span><\/span><\/span><\/p>\n \n \n \n

Background of the TASMAC Investigation<\/span><\/strong><\/span><\/span><\/span><\/p>\n \n \n \n

TASMAC, the state-run liquor retailer in Tamil Nadu, became the subject of an ED investigation following allegations of a \u00e2\u201a\u00b91,000 crore scam involving the sale of liquor above the maximum retail price. The ED conducted raids at TASMAC's headquarters from March 6 to 8, 2025, asserting that these actions were in line with the Prevention of Money Laundering Act (PMLA) due to suspected financial irregularities.<\/span><\/span><\/span><\/p>\n \n \n \n

Madras High Court's Initial Stance<\/span><\/strong><\/span><\/span><\/span><\/p>\n \n \n \n

The Tamil Nadu government and TASMAC challenged the ED's actions, arguing that the agency's raids were excessive and violated principles of federalism. However, the Madras High Court dismissed these petitions, stating that the ED's actions were within its jurisdiction under the PMLA.<\/span><\/span><\/span> <\/span><\/span><\/span><\/p>\n \n \n \n

\n \n

Case Title: The State Of Tamil Nadu v Directorate Of Enforcement And Anr.|Slp(Crl) No. 7958\/2025 And Tamil Nadu State Marketing Corporation Limited, (Tasmac) v Directorate Of Enforcement|Slp(Crl) No. 8048-8049\/2025<\/span><\/span><\/span><\/p>\n \n \n \n

 <\/div>\n","protected":false},"excerpt":{"rendered":"

"ED is crossing all limits. You are totally violating the federal structure of the country," stated the Chief Justice of India, B.R. Gavai, while issuing a stay on the Enforcement Directorate’s (ED) investigation and raids against the Tamil Nadu State Marketing Corporation (TASMAC).The bench of CJI B.R. Gavai and Justice A.G. Masih was considering petitions […]<\/p>\n","protected":false},"author":92,"featured_media":9043,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[9],"tags":[],"class_list":["post-7063","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-supreme-court"],"acf":[],"yoast_head":"\nSC Slams ED Over TASMAC Raids, Flags Federalism Violation - Lawful Talks<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SC Slams ED Over TASMAC Raids, Flags Federalism Violation\" \/>\n<meta property=\"og:description\" content=\""ED is crossing all limits. 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