SC says ED crossing all limits, stays probe against TASMAC in row over liquor shop licences

The Enforcement Directorate (ED) is crossing "all the limits" and violating the federal concept of governance, the Supreme Court said on Thursday, 22 May, while staying the money laundering probe against Tamil Nadu-run liquor retailer TASMAC over alleged corruption in grant of wine shop licences.

Issuing notice to the ED on pleas filed by the Tamil Nadu government and the Tamil Nadu State Marketing Corporation (TASMAC), a bench comprising Chief Justice of India B R Gavai and Justice Augustine George Masih told additional solicitor general S V Raju, appearing for the anti-money laundering probe agency, that “Your ED is crossing all the limits.”

“The Enforcement Directorate is violating the federal concept (of governance),” the bench observed, adding that the ED’s probe against the state-run TASMAC will not proceed in the meantime.

The law officer opposed the order, saying the issue involved corruption over Rs 1,000 crore and the ED is not crossing the limits “at least in this case.”

Meanwhile, senior DMK leader R.S. Bharathi said the Supreme Court staying the ED probe against TASMAC is a "big blow" to the BJP's efforts to malign the party-led government in the state and the central probe agency was a "blackmailing organisation".

Responding to the apex court staying the money laundering probe against liquor retailer Tamil Nadu State Marketing Corporation (TASMAC) over alleged corruption in grant of wine shop licences, he said the party welcomes the order.

Speaking to reporters soon after the court order, the DMK organisation secretary alleged that after Prime Minister Narendra Modi came to power in 2014, the ED has been used against non-BJP ruled states.

"In Tamil Nadu, the M K Stalin-led DMK government that assumed office in 2021 has been gaining popularity ever since and the Chief Minister's stature has been rising. Unable to digest this and the DMK alliance's electoral triumph after 2021, the ED was used to malign the DMK and the BJP leaders used to make all kinds of charges," he said.

"The SC staying the ED probe against TASMAC is a big blow to such things and is in deference to the sentiments of the people of Tamil Nadu...we welcome the (SC) order," he said.

"The Union government should stop misusing ED at least after this," the former MP added.

Bharathi further alleged that ED has become a "blackmailing organisation," and referred to instances of the agency's officials arrested by the state police of Tamil Nadu and Kerala over bribery allegations in the respective states to buttress his claim.