The Supreme Court on Thursday sharply rebuked the Enforcement Directorate (ED) for its recent raids on TASMAC, the Tamil Nadu State Marketing Corporation Limited, accusing the federal agency of “crossing all limits” and undermining the principle of federal governance. The apex court ordered a temporary halt to further ED proceedings in the case, signaling strong judicial disapproval of what was described as excessive and politically tinged interference.
A bench led by Chief Justice BR Gavai expressed concern over the ED’s sweeping actions, particularly its raids in March and again last week on TASMAC premises over alleged corruption in liquor distribution, bar licensing, and illicit cash flows. “You may register cases against individuals… but corporations? Your ED is passing all limits!” the Chief Justice remarked. The court issued a notice to the agency, returnable after the summer vacation, and stayed further proceedings in the interim.
The ruling has been hailed by the ruling Dravida Munnetra Kazhagam (DMK) government. RS Bharathi, a senior DMK leader and former Rajya Sabha MP, welcomed the Supreme Court’s intervention, calling it “a blow to the BJP’s efforts to malign the state government.”
The DMK-led Tamil Nadu government and TASMAC had moved the top court seeking relief from an April 23 order by the Madras High Court, which allowed ED actions to proceed. Represented by senior advocate Kapil Sibal, the state government argued that the ED had overreached by cloning mobile phones and accessing sensitive data during its raids on March 14 and May 16.
According to the ED, its investigations uncovered unaccounted cash worth Rs 1,000 crore and incriminating documents, including manipulated data related to tender awards, transport operations, and bar licenses. The agency claimed that TASMAC officials were involved in levying fraudulent surcharges of Rs 10 to Rs 30 per bottle.
However, Tamil Nadu Excise Minister S Muthusamy denounced the raids as politically motivated, accusing the ED of harassing state officials without producing concrete evidence. “The ED found no proof to substantiate the alleged irregularities. This is nothing but a political vendetta,” he said, reaffirming Chief Minister MK Stalin’s full support for state officers.
The controversy comes at a politically sensitive time, with Assembly elections scheduled for next year. The opposition BJP and AIADMK have seized on the alleged “liquor scam” to target the DMK government. BJP’s former state president K Annamalai alleged that state minister V Senthil Balaji was the “kingpin” behind the scam and claimed the corruption exceeded Rs 1,000 crore.
Minister Balaji, already facing scrutiny in a separate money laundering case, has categorically denied the allegations. “Everything is transparent in TASMAC’s operations. Purchase orders are based on averages of past sales. No special favours have been extended,” he said.
The Supreme Court’s strong remarks and the stay on ED action have reignited the broader debate on the alleged misuse of central agencies against opposition-ruled states, particularly in the run-up to elections.
Sources By Agencies
