New Delhi: The Enforcement Directorate is crossing "all the limits" and violating the federal concept of governance, the Supreme Court said on Thursday while staying the money laundering probe against Tamil Nadu-run liquor retailer TASMAC over alleged corruption in the grant of wine shop licences.
Issuing notice to the ED on pleas filed by the Tamil Nadu government and the Tamil Nadu State Marketing Corporation (TASMAC), a bench comprising Chief Justice B R Gavai and Justice Augustine George Masih told Additional Solicitor General S V Raju, appearing for the anti-money laundering probe agency, that “Your ED is crossing all the limits.” “The Enforcement Directorate is violating the federal concept (of governance),” the bench observed, adding that the ED's probe against the state-run TASMAC will not proceed in the meantime.
The law officer opposed the order, saying the issue involved corruption over Rs 1,000 crore and the ED is not crossing the limits “at least in this case”. The bench took note of the submissions of senior advocates Kapil Sibal and Amit Nand Tiwari that the state itself has lodged over 40 FIRs in cases related to the allotment of liquor shop licences since 2014, and now the ED jumps into the picture and raids the TASMAC.
“How can you raid the state-run TASMAC,” the bench asked.
The DMK-run state government and TASMAC moved the top court against the raids conducted by the ED at the premises of TASMAC.
The pleas challenged an April 23 order of the Madras High Court dismissing its pleas, giving the go-ahead for the ED action.
The ED was allowed to proceed with its action under the Prevention of Money Laundering Act (PMLA).
Senior DMK leader R S Bharathi on Thursday called the Supreme Court’s stay on the ED probe against Tamil Nadu’s state-run TASMAC a “big blow” to the BJP’s attempts to malign the state government.
Speaking to reporters soon after the court order, the DMK organisation secretary alleged that after Prime Minister Narendra Modi came to power in 2014, the ED has been used against non-BJP ruled states.
"In Tamil Nadu, the M K Stalin-led DMK government that assumed office in 2021 has been gaining popularity ever since, and the Chief Minister's stature has been rising. Unable to digest this and the DMK alliance's electoral triumph after 2021, the ED was used to malign the DMK, and the BJP leaders used to make all kinds of charges," he said.
"The SC staying the ED probe against TASMAC is a big blow to such things and is in deference to the sentiments of the people of Tamil Nadu... We welcome the (SC) order," he said.
"The union government should stop misusing ED at least after this," the former MP added.
Bharathi further alleged that ED has become a "blackmailing organisation" and referred to instances of the agency's officials arrested by the state police of Tamil Nadu and Kerala over bribery allegations in the respective states to buttress his claim.
(inputs from PTI)