TN govt moves SC against ED raids at TASMAC

The Tamil Nadu government has moved the Supreme Court against the raids conducted by the Enforcement Directorate at the premises of its state-run liquor retailer TASMAC. The state government has challenged an April 23 order of the Madras High Court dismissing its pleas and one filed by Tamil Nadu State Marketing Corporation (TASMAC) giving the go ahead for ED action.

The ED was allowed to proceed with its action under the Prevention of Money Laundering Act (PMLA).

TASMAC and the state government challenged in the high court the raids conducted by the Enforcement Directorate on the premises of the liquor retailer on March 6 and 8.


The high court, however, observed the offence of money laundering was a crime against the people of the nation.

The arguments of TASMAC and the state government over the harassment of its officers, who were detained for hours during the searches, were observed to be "inadequate and highly disproportional" by the high court "when compared to the rights of millions of people of the country".

The search conducted by ED was in the interest and benefit of the nation, it added.

On the argument that the searches were a result of political vendetta, the high court asked the government if a court could examine "political forces at play" or be a "partaker in the political game".

If a court accepts such a search conducted by an investigating agency was harassment, then it can lead to a floodgate of litigations where each and every citizen of this country bound by the rule of law would start alleging harassment on every procedure detailed under our criminal procedure system, it opined.

The high court said a raid or a search by an investigating agency must be discreetly planned and executed to ensure offenders were caught off guard.

The argument for a precondition of getting state government consent before conducting searches was completely illogical and bereft of conscience, it added.

The high court said prima facie allegations and complaints against TASMAC were grave, requiring a deeper probe.