"Violating The Federal Structure": Supreme Court Rebukes ED Over TASMAC Raids

New Delhi: The Supreme Court on Thursday heavily criticised the Enforcement Directorate (ED) for “crossing all limits” over Tamil Nadu State Marketing Corporation (TASMAC) raids in connection with financial irregularities.

Expressing concerns about federal agency’s move, a bench comprising Chief Justice of India B R Gavai and Justice A G Masih, stayed proceedings post-raid on state-run liquor distribution arm.

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The raids were conducted by the ED in connection with allegations of corruption involving more than Rs 1,000 crore. The probe agency claims that distilleries provided unaccounted cash to obtain liquor supply orders.

The bench expressed strong remarks against ED and asked “How can a corporation commit an offence? The ED is crossing all limits.” The Court also took note as senior advocate Kapil Sibal, appearing for Tamil Nadu, submitted that State itself had filed 41 FIRs against liquor outlet operators over allegations of corruption.

“You are totally violating the federal structure of the country,” CJI Gavai said about ED’s actions.

Similarly, Senior advocate Mukul Rohatgi, representing TASMAC, stated that the phones of the employees have been cloned. “There is something called privacy,” Rohatgi stated in the court.

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The Court gave the ED time to file a detailed response.

In 2025, the federal agency started raids on TASMAC’s headquarters to confiscate phones and devices found on the premises.

The DMK-run state government and TASMAC at first moved the Madras High Court against the raids conducted by the ED at the premises of TASMAC. The dismissal of the challenge prompted them to approach the apex court.