‘ED Has Crossed All Limits’: Supreme Court Slams Agency Over TASMAC Raids

On Thursday, the Supreme Court put a hold on all ongoing investigations by the Enforcement Directorate (ED) into alleged irregularities at Tamil Nadu's state-run liquor distributor, the Tamil Nadu State Marketing Corporation (TASMAC).

A bench comprising Chief Justice B.R. Gavai and Justice A.G. Masih also strongly criticized the central agency, saying the ED had been “crossing all limits” in the way it has been handling recent cases.

The court was hearing a Special Leave Petition (SLP) filed by TASMAC, which challenged a Madras High Court order from April 23. That order had dismissed three writ petitions filed by the Tamil Nadu government and TASMAC, which sought to declare as illegal a search and seizure operation conducted by the ED at TASMAC’s Chennai headquarters from March 6 to 8, 2025, as part of a money laundering investigation.

During the hearing, the bench questioned the legality of the ED’s actions, especially the move to register a case directly against a corporation. “How can you register a case against a corporation? You may proceed against individuals, but how can you go after a corporation?” the bench asked Additional Solicitor General S.V. Raju, who was representing the ED.

The court also pointed out that while the ED had registered cases against several top TASMAC officials, it had failed to clarify the nature of the predicate offence—the underlying crime required to initiate a money laundering case. “Where is the predicate offence?” the bench asked.

Raju argued that the case involved a multi-crore money laundering scheme and that the ED had acted appropriately. But the court was unconvinced, responding sharply: “We are saying this again. Your ED has been crossing all limits, Mr. Raju.”

Senior advocates Kapil Sibal and Mukul Rohatgi, representing TASMAC and its employees, contended that the ED had overstepped its authority by cloning mobile phones and seizing personal electronic devices without following due process. “There is something called privacy,” Rohatgi remarked, while Sibal urged the court to prohibit the use of any data extracted from those devices.

Just last month, the Supreme Court had declined to entertain a request by the Tamil Nadu government to transfer the case from the Madras High Court. At that time, the high court had sharply criticized the state for what it called “forum shopping” and accused it of undermining the judiciary.

With Thursday’s ruling, the Supreme Court has effectively paused the ED’s actions in the TASMAC case, while also signaling serious concerns over how the agency is exercising its investigative powers.