SC Questions ED Over TASMAC Liquor Probe
Supreme Court raises federalism, privacy concerns as ED investigates alleged liquor scam in Tamil Nadu
- SC questions ED over liquor scam involving TASMAC, citing federalism and jurisdiction concerns.
- ED claims Rs 1,000 crore unaccounted, irregularities in tenders, and fraudulent pricing.
- Tamil Nadu government and TASMAC argue no predicate offence exists; ED probe challenged.
- SC emphasizes Section 66(2) of PMLA regarding evidence sharing with states.
GG News Bureau
New Delhi, 14th Oct: The Supreme Court on Tuesday questioned the Enforcement Directorate (ED) over its investigation into an alleged liquor scam involving the Tamil Nadu State Marketing Corporation (TASMAC). The bench, led by Chief Justice BR Gavai, sought clarity on the agency’s jurisdiction, federal structure, and rights of state-run entities.
Senior advocates Kapil Sibal and Mukul Rohatgi argued on behalf of the Tamil Nadu government, challenging the ED raids conducted in March, which included seizure of computers and electronic devices. They questioned why the central agency intervened when 47 police cases had already been filed. The ED, represented by Additional Solicitor General SV Raju, defended its actions, stating the probe concerned the money laundering aspects of alleged large-scale corruption.
The Supreme Court highlighted the federal structure, asking how the ED could act when the state was already investigating. The bench referred to Section 66(2) of the Prevention of Money Laundering Act, emphasizing that evidence of other offences must be shared with the relevant authorities.
The dispute dates back to March when the ED claimed to have found irregularities and unaccounted cash of Rs 1,000 crore in TASMAC operations, including alleged manipulation in transport and bar licence tenders, as well as fraudulent pricing practices. The state-run corporation, however, argued that it is not an accused in any police case and maintains that no predicate offence exists, raising questions about the ED’s jurisdiction.
Tamil Nadu Excise Minister S. Muthusamy accused the ED of political vendetta and harassment of state officials. Opposition parties, including the BJP, have been criticized by the ruling DMK for allegedly using federal agencies to target rival parties ahead of next year’s Assembly polls.
The Supreme Court had previously questioned the ED’s actions in May, directing the agency to temporarily pause its investigation. The top court’s scrutiny underscores tensions between central probe agencies and state authorities in matters of federal jurisdiction and procedural propriety.
