In a significant development, the Supreme Court on Thursday slammed the Enforcement Directorate (ED) for its raids at the headquarters of Tamil Nadu State Marketing Corporation (TASMAC) and stayed the action by the relevant company in the money laundering case initiated by it in reference to the matter.
The bench of Chief Justice of India BR Gavai and Justice Augustine George Masih said the Enforcement Directorate was crossing all limits and acting in violation of the Constitution and federal structure through initiating movement against a government body.
Supreme court alleged ED
The top court room issued be aware to Enforcement Directorate on the Tamil Nadu government’s petition towards the Madras High Court order, which had allowed the ED probe to continue in the alleged ₹1,000 crore scam in TASMAC.
The Court granted life on the court cases even as asking the employer to provide an explanation for what the predicate offense was. Enforcement Directorate is violating the “federal structure of Constitution” the Bench said.
Enforcement Directorate Violate Federal Structure
The case concerns raids conducted by Enforcement Directorate from March 6 to March 8 at the TASMAC’s headquarters on allegations that TASMAC officials have been conducting overpricing of liquor bottles, gentle manipulation, and bribery, leading to financial irregularities of over ₹1,000 crores.
The ED suspected money laundering based on allegations contained in round 41-46 FIRs) registered by the State government or the TASMAC towards TASMAC officers over the years. The DMK-led State authorities and the TASMAC have, however, accused the Enforcement Directorate of an overreach of its powers and termed the March raids illegal.
They proceeded to task the legality of the ED’s raids before the Madras High Court, which dismissed the plea. They are counted and then reach the top Court.
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