Saturday, March 29, 2025
In an unprecedented move, the Supreme Court of India on Thursday issued a stern rebuke to the Enforcement Directorate (ED), stating the agency had “crossed all limits” in its handling of a corruption probe involving the Tamil Nadu State Marketing Corporation (TASMAC). The court halted further proceedings by the ED and demanded a detailed affidavit from the agency explaining its conduct.
The case stems from a petition filed by the Tamil Nadu government challenging a Madras High Court order that had granted the ED sweeping powers to investigate an alleged ₹1,000 crore scam in TASMAC. During the hearing, Chief Justice D.Y. Chandrachud, leading the bench, expressed deep concern over the ED’s aggressive actions and apparent disregard for constitutional norms.
“How can this be a criminal case against a corporation? This is a violation of federal principles. Your Enforcement Directorate is overstepping boundaries,” the Chief Justice remarked. He added, “Stop the proceedings. If the FIRs are against specific officials, why is the ED targeting the corporation as a whole?”
The Court criticized the agency’s tendency to act without restraint, suggesting it was infringing on the federal structure laid out in the Constitution. Justice Gavai noted, “The ED is actually breaching constitutional limits. This is not how an investigative body should behave in a federal setup.”
Responding to the observations, Additional Solicitor General S.V. Raju, appearing for the ED, insisted that a major scam had occurred and requested permission to submit a formal response. He maintained that significant irregularities were uncovered during the investigation.
In March, the ED began probing alleged malpractices in TASMAC, citing evidence of irregular cash flows and fraud in tendering processes. The agency claimed to have recovered unaccounted cash worth ₹1,000 crore and alleged manipulation in pricing decisions. It had conducted a series of raids across 10 locations under the Prevention of Money Laundering Act (PMLA) last week.
However, Tamil Nadu Excise Minister S. Muthusamy accused the ED of using these investigations as tools for political vendetta. “The agency is harassing government officials without any substantive evidence,” he claimed.
Following the Supreme Court’s order, the ED’s probe has been temporarily halted, pending a detailed judicial review. The court’s strong words signal a rare intervention and raise questions about the growing reach of central agencies in state matters.
