The Tamil Nadu government has escalated its legal battle against the Enforcement Directorate (ED) by filing a petition in the Supreme Court, challenging the agency’s recent raids on the Tamil Nadu State Marketing Corporation (TASMAC).This move follows the Madras High Court’s April 23 decision to dismiss the state’s pleas against the ED’s actions, allowing the agency to proceed with its investigation under the Prevention of Money Laundering Act (PMLA).
The ED’s investigation centers on allegations of a ₹1,000 crore scam involving TASMAC, the state-run liquor retailer.The agency suspects that illicit funds were generated through inflated pricing of liquor bottles by manufacturers, with proceeds allegedly funneled into various channels, including the film industry.
In March, the ED conducted extensive searches at TASMAC’s headquarters, distilleries, and breweries across Tamil Nadu.These actions led to the interrogation of TASMAC’s Managing Director, IAS officer S. Visakan, and searches at the residences of several businessmen and a film producer.
The Tamil Nadu government has criticized the ED’s actions as politically motivated and an overreach of authority. State Minister Muthusamy condemned the raids, asserting that they were based on unfounded allegations and aimed at tarnishing the state’s image.
The Supreme Court’s response to the state’s petition will be pivotal in determining the trajectory of this high-profile case, which has significant implications for federal-state relations and the enforcement of anti-money laundering laws in India.
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