TASMAC raids: SC says ED crossing all limits, breaching federal structure 

Chief Justice Gavai said ED’s actions against the State corporation had breached the federal structure of the country
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SUSHIL KUMAR VERMA

The Supreme Court on Thursday slammed the Directorate of Enforcement for “crossing all limits” and stayed the investigation conducted by the Central agency following raids on the Tamil Nadu State Marketing Corporation (TASMAC) offices.

“How can a corporation commit an offence? The ED is crossing all limits,” Chief Justice of India BR Gavai addressed Additional Solicitor General SV Raju, appearing for the Central agency.

Chief Justice Gavai said ED’s actions against the State corporation had breached the federal structure of the country.

“You are totally violating the federal structure of the country,” the CJI Gavai remarked.

The court was hearing a petition filed by the State of Tamil Nadu and TASMAC against a Madras High Court order in April, rejecting to stay of the ED investigation and raids on the corporation.

Senior advocate Mukul Rohatgi, for TASMAC, said the phones of the employees have been cloned.

“There is something called privacy,” Rohatgi submitted.

Kapil Sibal, for Tamil Nadu, said the State had registered 41 FIRs against liquor outlet operators over allegations of corruption.

The ED had entered the scene in 2025 and proceeded to raid the headquarters of TASMAC to confiscate the phones and devices found there.

“How can a criminal offence be made out against the corporation. You may register FIRs against the individuals, but against the corporation, in a criminal matter?” CJI asked..

Raju defended that the investigation involved a fraud committed to the tune of ₹1,000 crore. He said politicians were involved in the case.⁰

But the court asked why the ED had to intervene despite the State having filed multiple FIRs. The Bench queried about the predicate offence involved which had prompted the ED to swoop in.

Raju sought time to file a detailed response. He was given a fortnightly period to file his reply.

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Published on May 22, 2025