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Extending the enactment connected the Enforcement Directorate’s (ED) probe into money laundering cases registered against the Tamil Nadu State Marketing Corporation (TASMAC) successful transportation with an alleged liquor retail scam, the Supreme Court connected Tuesday (October 14, 2025) orally questioned whether the agency’s probe encroached upon the State’s authorization to analyse offences.
Hearing petitions filed by TASMAC and the Tamil Nadu government, a Bench of Chief Justice of India B.R. Gavai and Justice K. Vinod Chandran directed that the lawsuit beryllium listed aft the tribunal pronounces its judgement connected the reappraisal petitions challenging its 2022 ruling successful Vijay Madanlal Choudhary vs Union of Indiacase.
During the hearing, Chief Justice Gavai asked Additional Solicitor-General S.V. Raju, appearing for the ED, “What happens to the national structure? Would this not magnitude to encroachment upon the State’s close to investigate? Can’t the section constabulary look into the matter?”
In its 2022 judgement successful Vijay Madanlal, the apex tribunal had held that providing a transcript of the Enforcement Case Information Report (ECIR) to the accused is not mandatory successful each instance.
While TASMAC has argued that it was denied entree to the ECIR successful the contiguous proceedings, the ED maintained that the ECIR is simply an “internal administrative document” and that nary ineligible close exists for the accused to get a copy.
This marks the 2nd juncture successful six months that the apical tribunal has questioned the ED’s behaviour successful the case. In a erstwhile proceeding connected May 22, the Chief Justice had orally observed that the bureau was “crossing each limits” portion ordering an interim enactment connected its probe. The Madras High Court had earlier declined to assistance specified a stay.
Appearing for TASMAC, elder advocator Kapil Sibal submitted that the State Vigilance Department had already registered 47 FIRs relating to alleged irregularities betwixt 2014 and 2021. Referring to ED’s searches astatine TASMAC’s firm offices successful 2015, helium asked, “How tin you raid authorities offices? What happens to the national operation of this country?”
Citing Section 66 (2) of the Prevention of Money Laundering Act (PMLA), Mr. Sibal contended that the proviso requires the ED to stock accusation regarding offences with the State authorities conducting parallel investigations, which had not been done. He further argued that the ED had besides expanded its remit to probe the underlying facet of corruption.
Mr. Raju, for the ED, countered that determination was “large-scale corruption” and that the bureau was investigating lone the money-laundering component. He maintained that the “predicate offence”, which forms the ground for ED action, was established done FIRs registered by the State itself, and that the bureau had uncovered incriminating worldly during its probe.
To this, the Chief Justice remarked, “Law and bid indispensable run wrong its ain domain... what happens to the national operation otherwise?”
When the Bench pointed retired that the State had already filed aggregate FIRs, Mr. Raju remarked, “They person besides closed 37 FIRs successful a abbreviated time. Once the predicate offences go, the ED’s lawsuit collapses. They are attempting to chopped disconnected the ED by closing the FIRs.”
As the proceeding progressed, the Chief Justice, however, refrained from making immoderate adverse comments connected the ED’s functioning. “In the past six years, I person seen galore cases of the ED. But I bash not privation to accidental something, other it volition again beryllium reported (in the media),” helium said.
Responding to this, Mr. Raju said the media seldom reported favourably connected the agency’s work. “Anything successful our favour is hardly reported, and that is my grievance,” helium said.
The quality pertains to the ED’s hunt and seizure operations astatine the office of TASMAC, the State’s nationalist assemblage liquor retailer. The bureau has alleged large-scale fiscal irregularities involving kickbacks, manipulation successful procurement, and laundering of illicit proceeds linked to TASMAC’s concern activities. The Tamil Nadu government, nether Chief Minister M.K. Stalin, has firmly rejected these claims, accusing the BJP-led Union authorities of misusing Central agencies to harass governmental rivals and undermine the State’s autonomy.
