The Madras High Court on Monday said that the verdict in the case filed by Tamil Nadu State Marketing Corporation (TASMAC) against the raids conducted by the Enforcement Directorate (ED) will be pronounced on April 23..A Bench of Justices SM Subramaniam and K Rajasekar stated the same while reserving its judgment in the petitions filed by TASMAC and the State government challenging the legality of ED raids. .The Court reserved verdict after Senior Advocate Vikas Singh, appearing for TASMAC, argued that ED had no jurisdiction to enter the State of Tamil Nadu and that its actions at the TASMAC's head office reflected arbitrariness, high-handedness, a non-application of mind and a complete abuse of power. "In a normal investigation, it should be the other way round. There is a case registered, you start investigation on that. Here, it is opposite. ED decides, they collect FIRs and then start investigation. This is a unique case where ED does not even confirm when FIR brings about predicate offence. This is why rejoinder is important, will show how bogus this case is... These FIRs are at district manager level, nothing to do with head office. How does him charging ₹500 extra (lead to raid at TASMAC head office)? ... These are depot managers, too small a fry ... The jurisdiction for ED to step in is not there in this case. I am not for once trying to argue that lordships should get into merits of the allegations. I am only saying the facts of this case is so brazen, that ED had no jurisdiction to enter the State of Tamil Nadu," Singh said. .The case concerns raids conducted by the ED from March 6 to March 8 at the TASMAC's headquarters on allegations that TASMAC officials had been engaging in overpricing of liquor bottles, tender manipulation and bribery, leading to financial irregularities of over ₹1,000 crores. The ED suspected money laundering based on allegations contained in around 41-46 first information reports (FIRs) registered by the State government or the TASMAC against TASMAC officials over years. The DMK-led State government and the TASMAC has, however, accused the ED of an overreach of its powers and termed the March raids illegal. They proceeded to challenge the legality of the ED's raids before the Madras High Court, where they also accused the ED of harassing TASMAC employees during the search operations, particularly by detaining such employees under the guise of interrogation or search and seizure for over 60 hours. The ED, whose arguments were led by Additional Solicitor General (ASG) SV Raju has strongly refuted the claims of any harassment of TASMAC officials and maintained that the search operations were warranted and justified to unearth money laundering activities. .The case was initially heard by a Bench of Justices MS Ramesh and N Senthilkumar who on March 20, orally asked the ED to hold off any taking any further coercive action for the time-being. This Bench also expressed alarm over the allegations that the ED had kept back TASMAC officials at the TASMAC office for over 60 hours.However, days later, the Bench of Justices Ramesh and Senthilkumar recused from hearing the case. After this, the matter was heard by Justices Subramaniam and Rajasekar.The case briefly reached Supreme Court, when the Tamil Nadu filed a plea to transfer the matter to the top court following the recusal of Justices Ramesh and Senthilkumar. However, the State chose to withdraw the transfer plea after the Supreme Court expressed that it was disinclined to allow the transfer. .ED v. TASMAC: Madras High Court irked by State approaching Supreme Court "behind its back".Other counsel who appeared to argue the case included Senior Advocate Vikram Chaudhary (for TASMAC) and Advocate General PS Raman for the State of Tamil Nadu. .[Read Live Coverage]
