The Supreme Court on Thursday strongly criticised the Enforcement Directorate (ED), stating that it is "crossing all limits" and violating the federal structure of governance. The remarks came while the apex court stayed the ED's money laundering probe against Tamil Nadu State Marketing Corporation (TASMAC ), the state-run liquor retailer.
While hearing notice to the central probe agency, on pleas filed by the Tamil Nadu government and the TASMAC, a bench comprising Chief Justice 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."
Violating the federal concept
"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 government counsel objected to the court's order, arguing that the case involves corruption amounting to over Rs 1,000 crore and asserted that the ED is "not overstepping its bounds, at least in this case."
However, the bench acknowledged the arguments made by senior advocates Kapil Sibal and Amit Anand Tiwari, who pointed out that the Tamil Nadu government itself has registered over 40 FIRs related to the allotment of liquor shop licences since 2014 and now the ED jumps into the picture and raids the TASMAC.
"How can you raid the state-run TASMAC," the bench asked.
What is the case?
The Tamil Nadu government and TASMAC has moved the Supreme Court against the raids conducted by the ED 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.
(With PTI inputs)
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