The Supreme Court has temporarily stayed the Enforcement Directorate's (ED) action against TASMAC (Tamil Nadu State Marketing Corporation), the state-run corporation handling retail liquor sales in Tamil Nadu.
New Delhi: The Supreme Court adopted a b stance against the Enforcement Directorate's (ED) actions against TASMAC, the state-run liquor corporation in Tamil Nadu. A bench headed by Justice Bhushan Ramkrishna Gawai, in the absence of Chief Justice D Y Chandrachud, remarked that "the ED has crossed all limits and is violating the sanctity of the federal structure."
Senior advocates Kapil Sibal and Mukul Rohatgi, appearing for the Tamil Nadu government and TASMAC, leveled serious allegations, stating that the ED had misbehaved with employees during the raid on the corporation's office and cloned their mobile phones. They termed this a direct violation of the right to privacy.
Supreme Court's Sharp Rebuke
During the hearing, Chief Justice Bhushan Gawai stated that it is unacceptable for the ED to target a state-run corporation. He questioned the justification for a central agency's intervention when the state government itself is investigating the matter and relevant FIRs have been registered. The court temporarily stayed the ED's current action against TASMAC and directed the agency to submit a detailed response within two weeks.
Additional Solicitor General S. V. Raju, appearing for the ED, informed the court that financial irregularities amounting to ₹1000 crore occurred in TASMAC between 2014 and 2021. He argued that investigating these allegations is the ED's responsibility and that they have sufficient grounds. However, the court clarified that such aggressive action at the initial stage is against the spirit of the federal structure. The court indicated that if the state government is already conducting an investigation, the central agency's intervention cannot be deemed appropriate.
Stay on Madras High Court's Ruling
It is noteworthy that on April 23, 2025, the Madras High Court dismissed a petition filed by TASMAC and the Tamil Nadu government challenging the ED's investigation. The High Court stated that female employees were deliberately positioned to obstruct the raid. However, the Supreme Court disagreed, stating that protecting the constitutionally guaranteed rights of sensitive institutions is a primary responsibility.
What is TASMAC?
TASMAC (Tamil Nadu State Marketing Corporation) is a wholly owned corporation of the Tamil Nadu government that operates retail liquor sales in the state. This corporation functions under the state government's policies, and the state government is responsible for ensuring transparency and accountability in its operations.
What is the Case About?
The Tamil Nadu government stated that between 2014 and 2021, state agencies themselves filed 41 FIRs related to TASMAC, alleging irregularities and corruption in liquor sales licenses. Despite this, the ED registered a separate case and launched an investigation, which the state government considered unwarranted interference.
