The Enforcement Directorate (ED) has accused the Tamil Nadu State Marketing Corporation (TASMAC) of attempting to derail its investigation into a case of potential money laundering. The agency is investigating alleged financial irregularities to the tune of Rs 1000 crores at TASMAC. On Tuesday, April 1, the ED filed a detailed counter affidavit before a division bench of Justices SM Subramaniam and K Rajasekar of the Madras High Court.
The Tamil Nadu government had, on March 19, approached the Madras High Court seeking its intervention into the matter. The state alleged that the ED is attempting to conduct a roving enquiry into the affairs of TASMAC without reasonable cause or material evidence suggesting involvement in the commission of offenses under the Prevention of Money Laundering Act, 2002 (PMLA).
In the 47-page counter affidavit signed by ED assistant director Vikas Kumar, the agency contended that the petitions filed by the Tamil Nadu government seeking the High Court’s intervention in the probe are not maintainable. TASMAC is owned by the Tamil Nadu government and has a monopoly over sales of alcoholic beverages in the state.
According to the affidavit, the search operation began on March 6, at 11.54 am and continued till 11 am on March 8. While the TASMAC officials said that the prolonged search was unnecessary and violated due process, the ED refuted this, stating that the search was conducted “in a peaceful and orderly manner” and that “no coercion, threat, inducement, or promise” was used against the employees.
The ED questioned why TASMAC filed the writ petitions in the absence of any complaints by employees alleging harassment by the probe agency. It also stated that the entire process was carried out in accordance with law.
Vikas Kumar said that since TASMAC handled a huge amount of public money with substantial annual turnover, the investigation into money laundering charges against its officials serves a larger public interest. He also added that according to Directorate of Vigilance and Anti-Corruption records, multiple cases have been registered against the employees and officers of TASMAC in the past, on allegations of corruption in TASMAC. These include cases related to unaccounted cash found in retail shops and in the offices of the district managers, sale of liquor at higher prices, and receipt of bribes for transfers and appointments of employees.