The Tamil Nadu government has decided to withdraw its appeal before the Supreme Court challenging the Enforcement Directorate’s (ED) searches at the headquarters of the Tamil Nadu State Marketing Corporation (TASMAC), according to a report by The Times of India, which cited multiple government sources.
Tasmac scam: #TVK govt to withdraw appeal in SC against inspections by ED at Tasmac headquarters. ED report talks about “party funds” and TN govt wants the investigation by the central agency to continue. The scam is alleged to have happened in the previous DMK govt. pic.twitter.com/woKtO3HzgY
— Srivatsal Subramaniam (@SVatsal14825) June 27, 2026
According to the report, the state government has taken the decision as the ED’s investigation is now centred on allegations relating to political party funds and wants the probe to continue without pursuing the legal challenge.
A senior government official, speaking on condition of anonymity, told The Times of India that the government and TASMAC would withdraw the Special Leave Petition (SLP) within the next few days and that the necessary paperwork was already underway.
The official reportedly said that TASMAC had been informed of the decision on Friday and directed to take similar action on its own petition. The report added that the withdrawal petitions are expected to be filed before the Supreme Court’s vacation bench during the court’s summer recess, which began on 1 June and will continue until 12 July. Regular court proceedings are scheduled to resume on 13 July.
Another official quoted in the report stated that the timeline would depend on when the petition comes up for hearing.
Supreme Court Had Stayed ED Probe In 2025
The report noted that in May 2025, a Supreme Court bench comprising Chief Justice B.R. Gavai and Justice Augustine George Masih had stayed the ED’s money laundering investigation against TASMAC.
At the time, the apex court had criticised the enforcement agency’s actions, observing that the ED had been “crossing all limits” and that its actions violated the federal structure.
ED’s Allegations Against TASMAC
The ED had conducted searches at the TASMAC headquarters and several connected premises for two days beginning on 6 March 2025.
According to the report, the central agency alleged that multiple FIRs registered by the Directorate of Vigilance and Anti-Corruption (DVAC) disclosed offences including the collection of amounts exceeding the prescribed maximum retail price (MRP), kickbacks allegedly paid by distillery companies to TASMAC officials in exchange for supply orders, and bribes allegedly collected by senior officials from retail outlets for staff transfers and postings.
The agency further alleged that certain distilleries had systematically inflated expenses and fabricated bogus purchases to siphon off more than ₹1,000 crore in unaccounted cash.
Subscribe to our channels on WhatsApp, Telegram, Instagram and YouTube to get the best stories of the day delivered to you personally.
