The Tamil Nadu government has approached the Supreme Court to contest the Enforcement Directorate's (ED) raids on the premises of its state-run liquor retailer, Tamil Nadu State Marketing Corporation (TASMAC).
The state is challenging a Madras High Court order dated April 23, which dismissed pleas from both the state government and TASMAC, allowing the ED to proceed with its actions under the Prevention of Money Laundering Act (PMLA).
The ED conducted searches at TASMAC premises on March 6 and 8, prompting the state and TASMAC to challenge the raids in the Madras High Court. They argued that the searches caused harassment, with officers detained for hours.
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However, the High Court rejected these claims, stating that money laundering is a serious offense against the nation’s people and that the raids served the public interest.
The High Court dismissed allegations of political vendetta, noting that courts cannot engage in examining "political forces at play" or participate in political disputes. It further cautioned that accepting claims of harassment in such cases could open the floodgates to widespread litigation, with citizens challenging routine criminal procedures.
The court emphasized that investigative raids must be discreetly planned to catch offenders off guard, rejecting the state’s argument that prior consent from the Tamil Nadu government was required as "illogical and bereft of conscience."
The Madras High Court also highlighted the gravity of the allegations against TASMAC, stating that they warranted a thorough investigation. With the High Court’s ruling allowing the ED to move forward, the Tamil Nadu government has now escalated the matter to the Supreme Court, seeking to overturn the decision and halt the ED’s actions.
The case underscores the tension between state authority and central investigative agencies, with broader implications for the balance of power in such probes. The Supreme Court’s decision will likely set a significant precedent for similar disputes involving state-run entities and federal enforcement actions.
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