ED violating Constitution, crossing all limits: Supreme Court stays PMLA probe in TASMAC case

In a signification development, the Supreme Court on Thursday slammed the Enforcement Directorate (ED) for its raids at the headquarters of Tamil Nadu State Marketing Corporation (TASMAC) and stayed the action by the central agency in the money laundering case initiated by it in connection with the matter..The bench of Chief Justice of India BR Gavai and Justice Augustine George Masih said the ED was crossing all limits and acting in violation of the Constitution and federal structure by initiating action against a government body.The top court issued notice to ED on Tamil Nadu government's petition against the Madras High Court order which had allowed the ED probe to proceed in the alleged ₹1,000 crore scam in TASMAC."How can this offence be against the corporation? You may register against individuals.. A criminal matter against the corporation? Your ED [Enforcement Directorate] is crossing all limits," CJI Gavai remarked..The Court granted a stay on the proceedings while asking the agency to explain what the predicate offence was."Stay on the proceeding. When there are FIRs against officers why is ED coming here? Where is the predicate offence?? You (ED) put an affidavit," the Court said.ED is totally violating the "federal structure of Constitution", the Bench added.Additional Solicitor General SV Raju, appearing for ED, said he will file a response..ED is totally violating the "federal structure of Constitution"Supreme Court.The case concerns raids conducted by the ED from March 6 to March 8 at the TASMAC's headquarters on allegations that TASMAC officials had been engaging in overpricing of liquor bottles, tender manipulation and bribery, leading to financial irregularities of over ₹1,000 crores.The ED suspected money laundering based on allegations contained in around 41-46 first information reports (FIRs) registered by the State government or the TASMAC against TASMAC officials over years.The DMK-led State government and the TASMAC has, however, accused the ED of an overreach of its powers and termed the March raids illegal.They proceeded to challenge the legality of the ED's raids before the Madras High Court, which dismissed the plea. The matter then reached the top court.. Senior Advocates Kapil Sibal and Amit Anand Tiwari, appearing for the State of Tamil Nadu, today submitted that State itself had filed 41 FIRs against individuals since 2014."ED comes into picture in 2025 and raids the corporation head office. Phones taken...everything taken. This is an issue of privacy," Sibal added.Senior Mukul Rohatgi, who appeared for TASMAC, submitted,"All phones have been wiped out. Is there something such as privacy."Questioning the conduct of ED, the Court proceeded to grant stay in favour of State and TASMAC. .Senior Counsel Rohatgi was assisted by advocate Misha Rohatgi.ASG SV Raju and Special Counsel Zoheb Hossain represented the ED.