New Delhi: The Supreme Court on Thursday (May 22) slammed the Enforcement Directorate (ED) for carrying out raids at Tamil Nadu State Marketing Corporation (TASMAC) headquarters in connection with a money laundering case initiated by it and stayed proceedings, saying the agency has crossed all limits and is destroying the federal structure.
A bench comprising Chief Justice of India (CJI) BR Gavai and Justice Augustine George Masih stayed the proceedings while hearing a plea moved by the state government of Tamil Nadu and TASMAC against the Madras High Court order directing ED to probe alleged Rs 1,000 crore scam in state-run TASMAC.
“How can this offence be against the state-run corporation (TASMAC)? A criminal matter against the corporation. Your Enforcement Directorate is crossing all limits,” CJI Gavai said.
The bench, while staying the proceedings and issuing notice to the ED, asked the central agency to file an affidavit explaining what was the predicate offence.
“Stay on proceeding. When there are FIRs against officers why is ED coming here? Where is the predicate offence?? ED put an affidavit,” the bench said and added,
“ED is destroying the federal structure. ED is really crossing all the limits.”
Additional Solicitor General (ASG) SV Raju, who appeared for the ED, opposed the order and said that the issue involved corruption over Rs 1,000 crore and the agency is not crossing the limits “at least in this case.” He further told the court that the ED would file its response.
Advocates Kapil Sibal and Amit nand Tiwari, who appeared for the Tamil Nadu government, objected to the ED raiding TASMAC and told the court that the state government itself has lodged over 40 First Information Reports (FIRs) in cases related to allotment of liquor shop licences from 2014.
The High Court on April 23 dismissed the pleas of the Tamil Nadu government and allowed the ED to proceed with its action under the Prevention of Money Laundering Act (PMLA).
