TASMAC moves Madras High Court against ED raids

The Tamil Nadu State Marketing Corporation (TASMAC) has approached the Madras High Court against the recent Enforcement Directorate (ED) raids conducted on its premises and associated entities..The State-run liquor distribution corporation contends that the ED’s actions were excessive and beyond its jurisdiction.The case is expected to be heard tomorrow by a bench of Justices MS Ramesh and N Senthilkumar..TASMAC has asked the Madras High Court to direct the ED not to harass its employees under the guise of investigation. The agency has also sought a declaration from the Court that ED's action of investigating the offence within the territorial limits of the State is violative of federalism.According to TASMAC, ED can carry out such an investigation only on the request of State agencies..On March 6, 2025, the ED carried out raid at TASMAC headquarters in Chennai, as well as multiple distilleries and bottling units across Tamil Nadu. The agency alleged financial irregularities amounting to over ₹1,000 crore, citing issues such as tender manipulations, unaccounted cash transactions and overpricing at retail outlets.Following the raids, the ED claimed to have uncovered substantial evidence of collusion between distilleries and TASMAC officials, allegedly leading to the misappropriation of state revenue. These revelations triggered political tensions, with the opposition Bharatiya Janata Party (BJP) staging protests, demanding transparency and action against corruption.According to the ED, distilleries reportedly collaborated with bottling companies to artificially inflate expenses and record fictitious purchases. This scheme allegedly facilitated the diversion of substantial unaccounted funds, which were then used to bribe TASMAC officials to secure favorable supply orders..The ED has claimed to have identified irregularities in the allocation of transport and bar license tenders. Instances were allegedly found where tenders were awarded to applicants lacking essential documentation, such as GST or PAN numbers, and cases where only a single bidder was present, raising concerns about the transparency of the process.According to ED, TASMAC retail outlets were allegedly charging customers ₹10-30 more per liquor bottle than the mandated maximum retail price (MRP), suggesting a systematic overpricing strategy..The ruling Dravida Munnetra Kazhagam (DMK) party has criticised the ED’s involvement, alleging that the Central government is using its investigative agencies to further a political vendetta. Meanwhile, the BJP has dismissed these claims, asserting that the corruption allegations must be thoroughly investigated to ensure accountability.