TASMAC claim that employees were harassed during raids is false: ED to Madras High Court

The Enforcement Directorate (ED) on Thursday told the Madras High Court that the Tamil Nadu State Marketing Corporation (TASMAC) and the State government were making false claims about employees being harassed during ED raids that took place in March at the TASMAC headquarters..Representing the ED, Additional Solicitor General (ASG) SV Raju relied on panchnama reports (detailing events that took place during the search) to argue that no TASMAC employee was unnecessarily kept back for long hours, contrary to allegations that employees were held back for over 60 hours.“This (the panchnama) has been signed by officers of TASMAC. No endorsement was made that any female officer was harassed or not allowed to go back. No objection was raised. They accepted the proceedings. It is not their case that panchnama proceedings were falsely drawn. And a female officer from our side was also there...They (TASMAC, State) are also relying on this panchnama! Panchnama is part of the writ petition. This shows that the harassment claim is a false bogey created by them!…They (later) have made a bald statement that panchnama is untrue. What is untrue? There are no specifics…It (claim that TASMAC employees were harassed) was an afterthought, probably on legal advice they raised all this,” the ASG said..The submission was made before a bench of Justices SM Subramaniam and K Rajasekar, who had been hearing petitions filed by the DMK-led State government and TASMAC against the ED raids conducted from March 6 to March 8 at the TASMAC head office..The Court today was inclined to reserve its verdict in the matter, after ASG Raju concluded his arguments.However, on a request by Senior Advocate Vikas Singh, who represented TASMAC, the Court has posted the matter on Monday to hear his rejoinder submissions. "Only to hear learned senior counsel Vikas Singh, matter is directed to be listed on Monday despite the fact that court proposed to reserve orders today. It is made clear that any other submissions made be by written arguments. Court will not permit further oral arguments," the Court said. The Court today also perused a document submitted in sealed cover by the ED, which contained its "reasons to believe" that money laundering may have been committed, leading it its March raid at the TASMAC head office. .The ED has argued that the raids were conducted based on First Information Reports (FIRs) filed by the State itself in earlier years. These FIRs, many of which date back to around 2017, include allegations of bribery, overpricing of liquor bottles and tender manipulation.In arguments made yesterday, Raju refuted arguments by the petitioners that the raids were part of efforts to tarnish the reputation of the State and TASMAC.“(The FIRs) revealed a fraud of ₹1,000 crore. This was not a search to discredit somebody but a search to collect evidence,” he said during the hearing yesterday.He added that the ED only needs to suspect that money laundering has been committed to conduct a search operation under Section 17 of the Prevention of Money Laundering Act (PMLA). Once there are “reasons to believe” that support such a suspicion, the ED can conduct a search, he said.“The outcome of search need not determine its validity. Incriminating material may be removed, a clever crook may (hide evidence), but it will not invalidate search,” he added..He also justified the ED’s decision to raid the headquarters of TASMAC, even though the FIRs based on which it launched the probe (predicate offence FIRs) relate to various local outlets.“Regional Managers accused are connected to the TASMAC head office. Therefore, it required search at the TASMAC head office…We had to search where the records were kept, which was with the custodian at the head office ...Data will be at the head office. Inspection reports, all that will be at the head office, not local shops. Tender details also would be at the head office,” the ASG said..Meanwhile, Senior Advocate Vikram Chaudhary (also appearing for TASMAC), yesterday urged the Court to consider giving the TASMAC access to the ED's "reasons to believe" at least in a redacted form. "That is the only way I can effectively, meaningfully, and purposefully argue. Are you scared I will expose your (ED's) bogey, that I will be able to assist the Court? Sunlight is the best infectant and that ought to be followed," he said. Advocate General PS Raman also supported this stance yesterday. Representing the State, he added,"This is a thin edge...It is TASMAC today (that is being targeted by ED), it will be Tamil Nadu Cooperative Society or Aavin tomorrow.".[Read Live Coverage]