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In a major relief for the ruling DMK government in Tamil Nadu, the Supreme Court on Thursday, May 22, pulled up the Directorate of Enforcement (ED) and granted a stay against the money laundering probe initiated by the central agency in connection with the alleged Rs. 1000 crore Tamil Nadu State Marketing Corporation (TASMAC) scam.
The bench of Chief Justice of India BR Gavai and Justice Augustine George Masih slammed the ED for its actions and said that the ED was “violating the Constitution and crossing all limits.”
While registering strong objection over the ED’s action, the CJI further said, “You may register cases against individuals… but corporations? Your ED is passing all limits! Issue notice, returnable after vacation.”
While granting a stay on the ED investigation, the Supreme Court asked the ED to submit an affidavit explaining what is the predicate offence with regards to TASMAC. “When there are FIRs against officers why is ED coming here? Where is the predicate offence?? You (ED) submit an affidavit," the Court said.
On March 6, the ED had launched a money laundering probe against TASMAC and raided the headquarters of the state government-run entity. The probe was launched based on the 41 FIRs registered by the Directorate of Vigilance and Anti-Corruption (DVAC) in connection with excess amounts collected from consumers at retail outlets, distillery companies offering kickbacks to the officials of TASMAC for supply orders, and senior officials of TASMAC collecting bribes for transfers and postings.
During the searches, the ED uncovered incriminating data related to transfers and postings of staff, irregularities in the allocation of bar tenders, manipulation in TASMAC transport tender allocations, and collusion between distilleries and TASMAC officials.
Objecting to the ED action against TASMAC, the Tamil Nadu government and TASMAC had approached the Madras High Court, alleging harassment of the staff members. The High Court directed the TASMAC officials to cooperate with the ED investigations.
Armed with the Madras High Court order, the ED launched its second round of raids on May 16, targeting TASMAC MD Visakan, Tamil Nadu Deputy Chief Minister Udhayanidhi’s close friends Ratheesh, film producer Akash Baskaran, and others.
The ED officers had recovered WhatsApp conversations between TASMAC MD Visakan and Ratheesh, in which the latter is giving directions to the TASMAC MD on various issues.
Reacting to the development in the Supreme Court, DMK’s organising secretary RS Bharathi said that the Supreme Court’s order has put an end to the atrocities committed by the ED. The DMK leader also accused the BJP of unleashing ED against the DMK to tarnish the image of the party.