Supreme Court halts ED's money laundering probe against TASMAC pending decision on PMLA review

The Supreme Court on Tuesday halted Enforcement Directorate (ED)'s money laundering probe against Tamil Nadu State Marketing Corporation (TASMAC) in the alleged ₹1,000 crore scam till the top court takes a decision on a review plea pertaining to the provisions of Prevention of Money Laundering Act (PMLA)..In May, the top court had slammed the ED for its raids at the headquarters of TASMAC and stayed any coercive action as well as the money laundering probe against TAMSAC. It had made the intervention on Tamil Nadu government's petition challenging the Madras High Court decision to allow the ED probe to proceed with the money laundering probe. Today, the bench of Chief Justice of India (CJI) BR Gavai and Justice Vinod Chandran made the interim order absolute."Let the pleas come up after the review of PMLA is decided," the Court ordered, while referring to the Vijay Madanlal case. .Meanwhile, CJI Gavai also appeared to be dismayed at the delay in deciding the review plea."For the last three years we are hearing review is on. When will it be heard," Justice Gavai asked.Senior Advocate Kapil Sibal, who was representing Tamil Nadu, said,"We are trying very hard."A batch of review petitions challenging the July 2022 decision, that upheld sweeping powers of the ED under PMLA, are pending before a bench headed by Justice Surya Kant..PMLA validity: 13 questions raised by review petitioners before Supreme Court.Earlier today, the bench headed by CJI Gavai questioned ED's powers to probe the TASMAC matter, asking whether the central agency was not encroaching upon the rights of the State police in the matter. Sibal also asked how the ED can probe a corruption case.However, Additional Solicitor General SV Raju said the ED was only probing money laundering allegations. However, Sibal countered the submission."Just see the contents. See the counter - bribery, corruption etc. They have only investigated the [TASMAC] headquarters. They have not gone to the breweries also. What is this," he said.The arguments then shifted to the supply of Enforcement Case Information Report (ECIR) which was held to be an internal document in the Vijay Madanlal verdict.Justice Chandran then pointed out that the review plea against the verdict is pending."But Vijay Madanlal is under review. Whatever we say, we will be bound by three judges. You are protected," the top court judge said.The Court then proceeded to extend the interim protection to TASMAC and its officers till pendency of the review plea in Vijay Madanlal case..The present 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 have, however, accused the ED of 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, which dismissed the plea. The matter then reached the top court..[Read Live Coverage]