After strong remarks against ED, Madras High Court Bench recuses from hearing TASMAC raids case

In a significant development, a Bench of the Madras High Court comprising Justices MS Ramesh and N Senthilkumar, which was hearing the case concerning Enforcement Directorate raids at the premises of Tamil Nadu State Marketing Corporation (TASMAC), recused from hearing the matter on Tuesday..The Bench informed that it was recusing from hearing the matter this morning before the listed cases for the day were taken up. "That TASMAC matter, we are recusing ourselves, we are not taking. We have some reasons. Actually, we wanted it tomorrow, but we already signed the order (posting it today). Thereafter, we found we cannot take this matter. It will go before alternate Bench," the Bench said today.During the previous hearing of the matter on March 20, the Bench had expressed disapproval over the manner in which ED officials had allegedly conducted the raids at the premises of TASMAC, which is State-run liquor distribution corporation.The Bench had particularly objected to the ED officials allegedly restraining TASMAC employees and not conveying the reasons for the search and raids to the TASMAC officials.The Court had then asked the ED to file its response to the petitions moved by the State and TASMAC.The Court had also orally asked ED not to take any coercive action against TASMAC officials for the time being.However, today, the Bench informed the lawyers of its decision to recuse from the case..The case concerns ED raids carried out at the TASMAC's premises between March 6 and March 8.The petition before the High Court was filed by TASMAC, contending that the ED’s raids were excessive and beyond its jurisdiction. According to TASMAC, ED official barged into the TASMAC premises and violated the rights of their employees, including their privacy by seizing their mobile phones.On March 6, 2025, the ED carried out a raid at TASMAC headquarters in Chennai, as well as multiple distilleries and bottling units across Tamil Nadu. The agency alleged financial irregularities amounting to over ₹1,000 crore, citing issues such as tender manipulations, unaccounted cash transactions and overpricing at retail outlets.According to ED, TASMAC retail outlets were allegedly charging customers ₹10-30 more per liquor bottle than the mandated maximum retail price (MRP), suggesting a systematic overpricing strategy.Following the raids, the ED claimed to have uncovered substantial evidence of collusion between distilleries and TASMAC officials, allegedly leading to the misappropriation of State revenue. These revelations triggered political tensions, with the opposition Bharatiya Janata Party (BJP) staging protests, demanding transparency and action against corruption.According to the ED, distilleries reportedly collaborated with bottling companies to artificially inflate expenses and record fictitious purchases. This scheme allegedly facilitated the diversion of substantial unaccounted funds, which were then used to bribe TASMAC officials to secure favorable supply orders.The ED also claimed that there were irregularities in the allocation of transport and bar license tenders.The ruling Dravida Munnetra Kazhagam (DMK) party has criticised the ED’s involvement, alleging that the Central government was using its investigative agencies to further political vendetta. Meanwhile, the BJP has dismissed these claims, asserting that the corruption allegations must be thoroughly investigated to ensure accountability..TASMAC then moved the Court seeking directions to prevent the ED from harassing its employees under the guise of investigation. The State government also filed a plea in the matter, contending that the ED could not have "barged in" to the TASMAC premises in Tamil Nadu, without first getting the State government's consent. The manner in which the ED has acted has violated principles of federalism, the State argued during a March 20 hearing of the matter. During that hearing on March 20, the Court had also expressed alarm over allegations that the ED "took control" over the TASMAC premises and forced employees to stay back for long hours. Women employees who were allowed to go back at 1 in the morning were ordered to come back at 8 or 9 in the morning, the TASMAC and the State government had alleged."Is it not an alarming situation? We can understand if you have specific input. But can you keep the entire office under your control for hours together?" the Bench had asked ED.The ED, represented by Additional Solicitor General (ASG) AR L Sundaresan, had strongly refuted these claims. "No one was kept captive, everyone was allowed to go and come back," the ED counsel said. .Advocate General PS Raman represented the Tamil Nadu government while Senior Advocate Vikram Chaudhary appeared for TASMAC. .[Read Live Coverage]