Supreme Court halts probe into Tamil Nadu liquor scam
Noting that the ED was violating federal structure of Constitution, the Supreme Court, on Thursday, paused the Enforcement Directorate’s investigation and raids against Tamil Nadu’s state-run liquor body Tasmac (Tamil Nadu State Marketing Corporation).
With the order, the top court halted the ED’s probe under provisions of Prevention of Money Laundering Act, 2002, in the Tasmac case.
The Chief Justice of India BR Gavai made strong remarks against the central agency, saying the ED was “crossing all limits”. It also found ED’s actions disproportionate and possibly unconstitutional, as law and order is a state subject, and “violating the federal structure” by targeting a state corporation.
The order comes after the Tamil Nadu government moved the Supreme Court against the Madras High Court’s order on Tuesday (May 20). This appeal followed the Madras High Court’s decision on April 23, allowing the ED probe to proceed.
The ED alleges a Rs 1,000 crore liquor scam in Tamil Nadu, where distilleries gave unaccounted cash to secure liquor supply orders.
However, Tamil Nadu stated that it had, via the Directorate of Vigilance and Anti-Corruption, already filed 41 FIRs between 2014–2021 against individual outlet operators, it had told the top court.
The Tamil Nadu government filed a case in the Supreme Court regarding ED raids on Tasmac saying it was an overreach of the central agency’s powers and a violation of the Constitution. Tamil Nadu also accused the ED of political vendetta and asserted that the raids were illegal.