The Supreme Court on Thursday criticised the Enforcement Directorate (ED) for “crossing all limits” as it stayed the agency’s money laundering probe into Tamil Nadu state-run liquor retailer TASMAC.A bench of CJI BR Gavai and Justice Augustine George Masih issued notices to the ED on petitions filed by the Tamil Nadu government and the Tamil Nadu State Marketing Corporation (TASMAC) challenging recent raids.The top court also came down heavily against the ED’s move to initiate action and subsequent raids against a government-run body. It observed that the ED’s actions violated the federal structre and added that the probe against TASMAC will not proceed in the meantime.”Your Enforcement Directorate is crossing all limits. How can this offence be against the corporation?… You are totally violating the federal structure of the country,” the bench told Additional Solicitor General (ASG) SV Raju, appearing for the probe agency.The ASG opposed the order, saying the issue involved corruption over Rs 1,000 crore and the ED is not crossing the limits “at least in this case.”The bench took note of the submissions of senior advocates Kapil Sibal and Amit nand Tiwari that the state itself has lodged over 40 FIRs in cases related to allotment of liquor shop licences from 2014 and now the ED jumps in the picture and raids the TASMAC.”How can you raid the state-run TASMAC?” the bench asked.Notably, the state had appealed against the Madras High Court’s April 23 order dismissing its and TASMAC’s petitions challenging ED raids conducted between April 6 and 8, including at TASMAC headquarters.The bench had observed that the allegations against TASMAC were grave and warranted deeper investigation under the Prevention of Money Laundering Act (PMLA).The ED had earlier claimed that it had unearthed evidence showing large-scale irregularities and generation of illicit money to the tune of Rs 1,000 crore through fraudulent transactions by breweries and bottling units, which was later used as kickbacks to secure contracts in TASMAC.
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