The Madras High Court has asked the Enforcement Directorate (ED) to explain why it searched the Tamil Nadu State Marketing Corporation (TASMAC) headquarters. The Tamil Nadu government challenged the search, calling it unconstitutional and against the principles of federalism.
The court has ordered the ED to stop any further action against TASMAC until the matter is heard. It also directed the agency to provide details of cases filed against the state-run liquor corporation.
The ED searched TASMAC’s office from February 6 to 8, claiming there were irregularities in liquor procurement, bar licenses, and transport, leading to losses of over ₹1,000 crore. However, the state government argued that the search was done without permission, violating the Constitution.
The ED defended its actions, stating that the search was conducted under the Prevention of Money Laundering Act (PMLA) and that the Tamil Nadu government had no authority to challenge it. The court has set the next hearing for March 25 and asked the ED to submit all necessary documents.
During the hearing, the ED’s lawyer, ARL Sundaresan, denied allegations that the search was conducted at night and insisted that officials were allowed to leave after it ended. However, the court questioned the way the search was handled and demanded further clarification.
This case follows earlier ED raids in multiple districts on March 6 as part of its ongoing investigation under the PMLA, 2002. The agency claims to have uncovered a ₹1,000 crore corruption scam involving TASMAC, alleging bribery, tender fraud, and illegal financial transactions.
Tamil Nadu’s Electricity, Prohibition, and Excise Minister, V. Senthil Balaji, dismissed the ED’s accusations as baseless and assured that legal action would be taken. The court’s order for a detailed affidavit from the ED will play a key role in determining the legality of its actions and the future of the investigation.
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