SC Stays ED Probe in Tamil Nadu Liquor Scam, Says Agency “Crossing All Limits”
The Supreme Court on Thursday halted the Enforcement Directorate’s money laundering investigation into Tamil Nadu State Marketing Corporation (Tasmac), accusing the central agency of overstepping its authority and violating India’s federal structure.
Key Developments:
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The Court questioned ED’s jurisdiction to investigate a state corporation
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Tamil Nadu government and Tasmac challenged Madras HC’s April order
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ED conducted statewide searches on March 6, including Tasmac headquarters
The Controversy:
The ED alleges Tasmac anchors a ₹1,000-crore corruption network involving:
✓ State officials
✓ Liquor distilleries (SNJ, Kals, Accord, SAIFL, Shiva)
✓ Bottling companies (Devi Bottles, Crystal Bottles, GLR Holding)
Court Proceedings:
A CJI BR Gavai-led bench demanded: “How can you investigate a corporation? Target individuals if needed, but ED is crossing all limits!”
State representatives presented key arguments:
• Advocate Kapil Sibal noted 41 existing FIRs against liquor operators (2014-2021)
• Mukul Rohatgi alleged ED violated employee rights during searches
• State claims officials seized phones without proper summons
ED’s Allegations:
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Tender manipulation (₹100cr transport contracts)
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Fake purchase orders generating ₹1,000cr unaccounted cash
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Routine overcharging (₹10-30 per bottle)
Next Hearing: June 1
The DMK government accuses the Centre of political vendetta, with Home Secretary Dheeraj Kumar calling the probe “baseless reputation-tarnishing.”