ED ‘Crossing Limits’ in TASMAC Probe, Says CJI Gavai
CJI Gavai Condemns ED Raids in TASMAC Case
The Chief Justice of India, BR Gavai, has strongly criticized the Enforcement Directorate (ED) for its recent raids in connection with a money laundering case involving the Tamil Nadu State Marketing Corporation Limited (TASMAC).
‘Violating Federal Structure’
During a hearing on Thursday, May 22nd, Justice Gavai expressed his concerns, stating, “ED is crossing all limits. You are totally violating the federal structure of the country.” The court issued a notice to the ED, questioning the legality of raiding TASMAC, a state-owned entity.
Background of the Case
The case revolves around allegations of a ₹1,000 crore scam within TASMAC, which holds a monopoly on liquor trade in Tamil Nadu. The ED first conducted raids in March, alleging irregularities in tender processes and unaccounted cash transactions. They claimed to have found evidence of communication between distillery companies and high-ranking TASMAC officials, suggesting attempts to secure preferential treatment and inflate expenses to siphon off funds.
Court’s Intervention
The Tamil Nadu government challenged the Madras High Court’s order, which had granted the ED wide-ranging powers in the investigation. The Supreme Court, in response, stayed any further proceedings by the ED in the case.
Stay on ED Proceedings
This development comes after the ED conducted searches across various districts in Tamil Nadu on May 16th, further fueling the controversy. The Supreme Court’s intervention highlights the sensitivity surrounding the case and the potential clash between federal and state authorities in investigating financial crimes.
