'ED Crossing All Limits': Supreme Court Slams Probe Agency Over TN Raids

The Supreme Court on Thursday rebuked the Enforcement Directorate for "crossing all limits" and violating the concept of federal governance, referring to raids - in March and last week - of state-run liquor shops in Tamil Nadu. An irked court directed the federal agency to stand down for now.

The Chief Justice of India BR Gavai, made strong remarks against the central agency and found ED’s actions disproportionate and possibly unconstitutional, as law and order is a state subject. CJI said the ED was “crossing all limits” and “violating the federal structure” by targeting a state corporation. "Meanwhile, stay granted of further proceedings."

The order comes after the Tamil Nadu government moved the Supreme Court against the Madras High Court's order on Tuesday (May 20). This appeal followed the Madras High Court’s decision on April 23, allowing the ED probe to proceed. The ED alleges a Rs 1,000 crore liquor scam in Tamil Nadu, where distilleries gave unaccounted cash to secure liquor supply orders.

However, Tamil Nadu stated that it had, via the Directorate of Vigilance and Anti-Corruption, already filed 41 FIRs between 2014 and 2021 against individual outlet operators, it had told the top court.

The Tamil Nadu government filed a case in the Supreme Court regarding ED raids on Tasmac saying it was an overreach of the central agency’s powers and a violation of the Constitution. Tamil Nadu also accused the ED of political vendetta and asserted that the raids were illegal.

The state also claimed that Tasmac officials and employees, including women staff, were subjected to harassment and detained for prolonged periods during the searches, with their phones and personal devices seized, violating their privacy and fundamental rights.

The state government, led by the DMK, accused the BJP-led central government of misusing central investigative agencies like the ED for political purposes and to tarnish the state's image, especially with upcoming elections in mind.

The Tamil Nadu government and Tasmac had initially challenged the ED raids before the Madras High Court, which was dismissed prompting an appeal to the Supreme Court. This wasn’t the first time the Tamil Nadu government approached the Supreme Court regarding the Tasmac issue. They had previously sought to transfer their petition from the Madras High Court to another high court outside the state on April 4, but withdrew that plea four days later.