New Delhi, May 22, 2025: The Supreme Court of India has stayed the Enforcement Directorate’s (ED) money laundering investigation into the Tamil Nadu State Marketing Corporation (TASMAC), the state’s official liquor retailer. The Court criticized the ED for “crossing all limits” and violating the federal structure of governance .
A bench comprising Chief Justice B.R. Gavai and Justice Augustine George Masih issued notice to the ED on a plea filed by the Tamil Nadu government and TASMAC. The plea challenged the ED’s actions, alleging grave violations of constitutional rights and the federal structure. The Court’s decision overrules a previous Madras High Court order that had allowed the ED’s probe to continue.
Senior advocates Kapil Sibal and Amit Anand Tiwari, representing the state and TASMAC, argued that the ED’s actions encroached upon state jurisdiction, especially since the state had already initiated its own investigations into alleged irregularities in the granting of liquor shop licenses. They highlighted that 41 FIRs had been lodged against purported wrongdoers in cases related to the allotment of liquor shop licenses from 2014.
The ED, represented by Additional Solicitor General S.V. Raju, contended that the case involved corruption amounting to over ₹1,000 crore and that their investigation was warranted. However, the Court questioned the necessity of the ED’s involvement, especially given the state’s ongoing actions.
The case has sparked a broader debate on the limits of federal agencies’ powers and their interactions with state-run entities. The Supreme Court’s intervention underscores the judiciary’s role in maintaining the balance between central and state authorities.
Supreme Court Halts ED Probe into Tamil Nadu’s TASMAC, Criticizes Agency for Overreach
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