The Supreme Court has stopped the Enforcement Directorate (ED) from continuing its investigation into the Tamil Nadu government’s liquor company, TASMAC. The court said the ED is crossing its limits and going against the rules of federalism, where both the central and state governments have their own powers.
A team led by Chief Justice B R Gavai and Justice Augustine George Masih said the ED is interfering in state matters. They made these remarks while hearing a case filed by the Tamil Nadu government and TASMAC against ED raids.
Senior lawyers Kapil Sibal and Amit Anand Tiwari argued that the state had already filed 41 FIRs and was handling the matter on its own. They questioned why the ED was getting involved now, especially when TASMAC is not even an accused but actually the complainant in many of the cases.
The ED had conducted a 60-hour raid at TASMAC offices from March 6 to 8, 2025, claiming there was corruption of over ₹1,000 crore in giving licenses to liquor shops. But the Supreme Court questioned the need for such action when the state was already investigating.
The Tamil Nadu government said the ED’s actions were like a “fishing expedition” with no strong reason or proof, which is against the rules of the Prevention of Money Laundering Act (PMLA). The government also challenged an earlier order by the Madras High Court that supported the ED’s actions.
The Supreme Court has now put a hold on the ED’s probe and asked for a reply from the agency.
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