PIL for CBI probe into TASMAC case: AG tells Madras High Court he will advise State not to close FIRs

The Tamil Nadu Advocate General on Thursday assured the Madras High Court that he will advise the State government not to close over 40 first information reports (FIRs) filed in connection with the Tamil Nadu State Marketing Corporation (TASMAC) scam for the time being..The submission was made while hearing a public interest litigation (PIL) petition seeking a Central Bureau of Investigation (CBI) probe into the matter.Appearing before a Vacation Bench of justices GR Swaminathan and V Lakshminarayanan, Advocate General PS Raman today sought an adjournment of the matter while pointing out that the PIL petitioner has not impleaded all necessary parties. .Raman explained that those who have been accused in the FIRs on complaints by TASMAC have not been made a party.Such accused persons have a right to be heard before any decision is taken on whether these cases should be transferred from the Department of Vigilance and Anti-Corruption (DVAC) to the CBI for investigation.The Bench said it was willing to adjourn the case without passing any other interim order, but flagged concern that the petition could be rendered infructuous if the State were to close the FIRs before the matter is heard next. .Notably, the TASMAC FIRs, which were filed between 2017 and 2024, recently led the Enforcement Directorate (ED) to register a case under the Prevention of Money Laundering Act, 2002 (PMLA) on allegations that these FIRs (predicate offence FIRs) indicated financial irregularities and tender manipulations amounting to about ₹1,000 crores.The High Court today noted that if the State or the TASMAC were to withdraw the FIRs, the ED's PMLA probe would also go. Any scope for a possible CBI probe into the matter would also go, as a result."Pavana Dibbur case clearly says, if the predicate offence goes, PMLA prosecution also goes ... Can you undertake not to close predicate offence? We will not pass any interim order. But what if the State closes all predicate offences? PMLA will go ... This writ petition will become infructuous if you close predicate offences tomorrow," the Court observed.AG Raman assured that it is unlikely that the TASMAC FIRs would be closed as apprehended and also said that he will tell the State Home Ministry not to close the FIRs. "If we have to close it, we can't close it by ourselves. We will have to file a closure report before the jurisdictional magistrate, we can't close it unilaterally... Lordship may take it (some other day) ... Lordships may not record it, but I will advice the State accordingly (not to close any case) ... I will tell the Home Ministry not to do anything," he said..Responding to a passing remark by the Court that the State is allied with TASMAC, the AG also asserted that the State is not trying to protect TASMAC. He said that even in other hearings, the State had opposed the ED's probe in the TASMAC case only to protect federalism..The Court proceeded to record the AG's submission that he would advice the State authorities not to close the TASMAC FIRs. It adjourned the case before it for three weeks by which time the State was asked to place a status report on the TASMAC FIRs.The Court noted that the petitioner has not impleaded all the accused in the petition but added that this was a curable defect."To enable the petitioner to cure the defect, the case stands adjourned by three weeks. Since the Hon''ble Supreme Court has held that if predicate offences are closed, PMLA prosecution cannot survive, we called on AG to make a statement that predicate offence will not be closed. He informed that he will definitely advice Home Secretary not to close pending predicate offences till next hearing date. Adjourned by three weeks," the order said..Senior Advocate Dama Seshadri Naidu appeared for the petitioner K Venkatachalapathy..Notably, an hour after the High Court's order in this matter, the Supreme Court today stayed the ED's money laundering probe in the TASMAC case, on a plea by the Tamil Nadu government. The State had challenged a High Court order that allowed the ED to proceed with its investigation.The top court has stayed the ED's action for now. During the hearing, the Bench also remarked that the ED appeared to be "crossing all limits" and violating the federal structure of Constitution by probing TASMAC. .ED violating Constitution, crossing all limits: Supreme Court stays PMLA probe in TASMAC case.[Read Live Coverage]