New Delhi: In a strongly worded rebuke, the Supreme Court of India has reprimanded the Enforcement Directorate (ED) for what it described as overreach in its ongoing investigation into the Tamil Nadu State Marketing Corporation Limited (TASMAC), the state-run entity that holds a monopoly over liquor distribution in Tamil Nadu.
During Thursday’s hearing, a bench led by Chief Justice BR Gavai slammed the ED for conducting extensive raids and seizing data, stating, “You may register cases against individuals… but corporations? Your ED is passing all limits!” The court issued notice to the agency and placed a temporary stay on further proceedings, with the matter scheduled to resume post the court’s summer vacation.
Background: What Sparked the Controversy
The Supreme Court’s intervention follows two rounds of ED raids — on March 14 and May 16 — targeting TASMAC offices across Tamil Nadu. During these operations, the agency reportedly seized and cloned mobile phones, raising legal and ethical questions regarding procedural overreach.
According to the ED, its initial raids uncovered “multiple irregularities” in TASMAC’s operations, including discovery of “unaccounted” cash worth ₹1,000 crore; “Incriminating” digital data allegedly tied to corporate appointments and the tendering process for liquor transportation and bar licenses and alleged fraudulent pricing involving surcharges of ₹10 to ₹30 per bottle, purportedly with the collusion of TASMAC officials.
The ED invoked provisions under the Prevention of Money Laundering Act (PMLA) and searched ten premises during the May 16 raids, claiming further manipulation of data related to tender awards.
Tamil Nadu Government Hits Back
Tamil Nadu Excise Minister S. Muthusamy and other state officials have hit back fiercely at the ED’s actions, calling them politically motivated and intended to harass state functionaries.
“This is nothing but a political vendetta. No concrete evidence has been found,” Muthusamy said. He emphasized that Chief Minister MK Stalin’s government stands firmly with its officials, asserting the transparency of TASMAC’s operations, particularly in procurement and tendering.
Political Backdrop and Brewing Tensions
The raids have intensified political friction in Tamil Nadu, especially as the state gears up for next year’s Assembly elections. The ruling DMK and its chief MK Stalin are at loggerheads with the AIADMK-BJP alliance, which has repeatedly accused the state government of corruption.
BJP’s K. Annamalai, the party’s former state unit chief, accused Minister V. Senthil Balaji of being the “kingpin” of a ₹1,000 crore scam, despite the lack of substantiated proof so far. “I have my sources. Senthil Balaji is involved in every scam,” Annamalai claimed.
Minister Balaji, who is also under scrutiny in a separate money laundering probe, categorically denied the allegations, stating:
“Everything is transparent as far as TASMAC is concerned… There are no favours, and the process of purchase orders is governed by clear, average-based criteria.”
A Larger Trend? Political Vendetta or Accountability?
The Supreme Court’s stern reaction has reignited the national debate over the politicization of federal agencies, with opposition parties frequently accusing the BJP-led central government of weaponizing institutions like the ED and CBI to undermine rival state governments ahead of elections.
The court’s direction to the ED to “stay further proceedings” for now offers a temporary reprieve to the Tamil Nadu government, but the larger questions of due process, federal overreach, and political motivations behind such high-profile investigations remain.
