The Supreme Court on 14 October 2025 heard the Enforcement Directorate’s (ED) case regarding a massive, alleged liquor scam involving the Tamil Nadu State Marketing Corporation Limited (TASMAC), during which the central probe agency detailed the scale of “rampant corruption” and the discovery of incriminating evidence.
The hearing saw the ED, represented by Additional Solicitor General SV Raju, defend its investigation into what it claims are large-scale irregularities. The agency argued that despite the state government filing 47 police cases, the corruption continued, necessitating its probe into the money laundering aspect.
“There are 47 police cases… there are large-scale irregularities, large-scale corruption. We are only investigating the money laundering aspect. These are all predicate offences,” Raju told a bench led by Chief Justice BR Gavai.
The ED’s investigation, which included two sets of raids in March, allegedly uncovered evidence of a major scam. The agency has claimed it found unaccounted cash worth a staggering ₹1,000 crore. Furthermore, it stated it seized “incriminating” data related to corporate postings, and transport and bar licence tenders, as well as indent orders ‘favouring’ a few distilleries.
Crucially, the ED presented what it called “evidence” of fraudulent pricing, specifically surcharges of ₹10 to ₹30 per bottle sold by TASMAC outlets, imposed with the “involvement” of TASMAC officials. In a subsequent raid, the agency claimed to have found ‘manipulated data’ indicating cheating during the award of tenders.
The DMK-run state government and TASMAC had approached the Supreme Court to challenge the Madras High Court’s order that green-lit the ED’s action. Senior advocates Kapil Sibal and Mukul Rohatgi, arguing for the state, questioned the ED’s jurisdiction and its methods.
“We already filed FIRs… Why are they (the ED) coming in-between when we have already filed FIRs and we are investigating?” Sibal argued. Rohatgi raised concerns over privacy, asking, “What happens to the right to privacy of TASMAC staff… how could they detain mobiles of the staff? Women employees were held back…”
The bench itself raised pointed questions about the federal structure of the country. “What happens to the federal structure? Are you not taking away the state government’s right to investigate?” the Chief Justice asked, also referencing a section of the PMLA that requires the ED to share evidence of other crimes with the relevant state authority.
This is the second time in six months the top court has questioned the ED on this case. In a previous hearing in May 2025, Chief Justice Gavai had told the agency, “You may register cases against individuals… but corporations? Your ED is passing all limits!”
The case has significant political ramifications, erupting as Tamil Nadu’s political parties prepare for next year’s Assembly poll. While the ED insists it is investigating a major financial scam, the ruling DMK has consistently accused the agency of a “political vendetta” aimed at maligning the state government.
(Source: NDTV)
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