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‘ED Crossing All Limits, Violating Federal Structure’: SC Stays Agency's Investigation Against Tamil Nadu's TASMAC

  • The Supreme Court put a hold on the Enforcement Directorate's 2025 probe related to alleged corruption involving Tamil Nadu's TASMAC and the issuance of wine shop licenses.
  • The stay was granted following petitions from the Tamil Nadu administration and TASMAC, which contested an April ruling by the Madras High Court that permitted the Enforcement Directorate to carry out raids despite the state having registered 41 FIRs.
  • The Supreme Court criticized the ED for violating the federal structure and questioned how it could investigate the corporation when FIRs targeted individuals only.
  • The ED alleged a ₹1,000 crore scam involving liquor manufacturers, bottling companies, and officials through inflated expenses and illicit payments to secure Tasmac orders.
  • The court's hold on the probe suggests limits on central agency actions against state entities and reflects ongoing federal tensions regarding jurisdiction and investigatory powers.
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Conventus Law broke the news in on Thursday, May 22, 2025.
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