Lagatar24 Desk
New Delhi: The Supreme Court on Thursday came down heavily on the Enforcement Directorate (ED) over its recent raids on Tamil Nadu State Marketing Corporation (Tasmac), the state-run liquor distribution body, calling the agency’s actions an overreach of authority. A bench led by Chief Justice BR Gavai and Justice AG Masih stayed all proceedings following the raids and issued a notice to the ED, granting two weeks to respond.
SC questions federal overreach
“ED is crossing all limits,” the bench remarked multiple times during the hearing, raising concerns about the agency’s role in investigating state-managed entities. The court was hearing a plea filed by the Tamil Nadu government, which accused the central agency of violating federal principles by intervening in a matter already being handled by the state’s own investigative mechanisms.
State already probing the matter
Senior advocates Kapil Sibal and Amit Anand Tiwari, representing the Tamil Nadu government, pointed out that over 40 FIRs had already been registered by the state related to liquor shop license allocations dating back to 2014. “Now suddenly the ED steps in and raids TASMAC,” Sibal argued, suggesting political motives behind the action.
ED defends its actions
Additional Solicitor General opposing the stay order argued that the case involves corruption worth over ₹1,000 crore and insisted that the ED’s intervention was justified. The agency cited financial misconduct and illegal revenue generation from inflated bottle prices as the basis for their action under the Prevention of Money Laundering Act (PMLA).
Widespread raids and questioning
The ED had launched extensive searches on various premises linked to TASMAC officials, including IAS officer S Visakan, who currently serves as Managing Director. Raids were conducted at his Manapakkam residence and across several locations in Chennai including Besant Nagar, Anna Salai, T Nagar, and Teynampet. Film producer Akash Baskaran’s house was also searched, though no official link was disclosed.
Visakan was interrogated by ED officials for hours and was taken, along with his wife, to the ED’s Nungambakkam office for questioning. The agency claimed that previous summons to Visakan had been ignored. Earlier in March, ED had also raided TASMAC’s head office, breweries, and distilleries across Tamil Nadu.
High Court had upheld ED action
The Madras High Court had earlier dismissed TASMAC’s plea seeking to declare the ED’s searches as illegal. The Supreme Court stay now halts further proceedings pending the ED’s reply.
