The top court expressed strong disapproval of the agency’s actions, stating that the ED was “crossing all limits.” The court remarked that the ED appeared to be violating the federal principle, “how can it raid TASMAC,” asked SC.

The court was hearing the Tamil Nadu government’s plea against ED raids on state-run liquor retailer TASMAC.

The Tamil Nadu government has approached the Supreme Court challenging ED’s raids on the premises of TASMAC. The state has contested the April 23 ruling by the Madras High Court, which dismissed petitions filed by both the government and TASMAC and allowed the ED to continue its investigation under the Prevention of Money Laundering Act (PMLA).

What the Madras HC ruling said

TASMAC and the Tamil Nadu government had approached the Madras High Court challenging the Enforcement Directorate’s raids on the liquor retailer’s premises on March 6 and 8. However, the high court dismissed their petitions, stating that money laundering was “a crime against the people of the nation.”

The court termed the state’s arguments over alleged harassment of its officers as “inadequate and highly disproportional” when weighed against “the rights of millions of people of the country.” 

On government’s argument of ED’s action being politically motivated, the HC rejected vendetta charge, asking whether a court could assess “political forces at play” or become a “partaker in the political game.”