What Tamil Nadu said when Madras High Court asked State to cooperate with ED in TASMAC case

The Madras High Court on Tuesday urged the Tamil Nadu government to consider cooperating with the Enforcement Directorate (ED) in examining the allegations of financial irregularities in the operation of the State-run liquor distributor, Tamil Nadu State Marketing Corporation (TASMAC)..The Court orally observed that there is still scope for the State to cooperate with the central agency, adding that the matter should not be viewed as a battle of egos. However, Advocate General (AG) PS Raman, appearing for the State, said that the State is not inclined to cooperate now that the ED had already barged into TASMAC premises and conducted its raids without making any effort to first seek cooperation from State officials. "I will not cooperate when they have come and sat on my office..." the AG argued. "It is not an ego point," the Court said."It is very much an ego point... did they cooperate? March 6, it (the ED raids) happened. (None of the State authorities) have even benefitted by even a single letter from ED on what has happened. (Prevention of Money Laundering Act) requires them to work in tandem!" the AG replied. A Bench of Justices SM Subramaniam and K Rajasekar was hearing petitions filed by the State government and TASMAC challenging ED raids conducted from March 6 to March 8 on allegations of financial irregularities amounting to over ₹1,000 crore in TASMAC's operations..AG Raman commenced arguments on behalf of the Tamil Nadu government today after the counsel representing TASMAC concluded their submissions. AG Raman contended that the State never said it would not cooperate with the ED if it sought assistance. However, he questioned whether the ED's actions in this case were in actual public interest. He pointed out that TASMAC is either the complainant or the victim of the alleged financial irregularities cited in various first information reports (FIR) registered in Tamil Nadu by the State police between 2009 and 2024. TASMAC has not been named the accused in any of these FIRs, which were purportedly the basis for the ED's March raids, he added. "You will not find a single case where TASMAC is accused. When that is the case, on March 6, what was reason to attack TASMAC headquarters, keep officials for 70 hours? They have filed pages to say I (ED) have not arrested anyone. This is worse than arrest! ... It all comes down to this, what did they find in predicate offence that they made TASMAC subject to search?" he contended. He added that attempts were being made to soil TASMAC's image. In this regard, he recounted that the State President of a "national level political party" (referring to BJP leader K Annamalai) had also levelled serious allegations against TASMAC to play with public perceptions. "I am concerned about the image of the State, the image of the TASMAC! Have they done something wrong? I'll pull them up. I don't need my brother-in-law to do it!" the AG argued. .Representing the TASMAC, Senior Advocate Vikas Singh questioned the ED's apparent reluctance in producing the FIRs based on which it decided to lodge its ECIR (Enforcement Directorate Crime Information Report). He explained that the ED's jurisdiction is limited and that it is only once the FIRs are disclosed that the Court may be able to examine whether the ED even have the jurisdiction to conduct raids at TASMAC premises. He also urged the Court to examine the timing of the ED raids at TASMAC, hinting that they were politically motivated."Please see the danger, there are 29-30 States. In every State where opposition is in power, ED will pick anyone and (launch probe) ... If ED had credibility, then ED would be doing similar things in BJP States also. It is not as if the excise departments of those States are not corrupt. But they pick and choose. That is were federalism (aspect comes in)," he said. He added that the ED may be trying to influence the course of the State Legislative Assembly elections scheduled next year. "The ED is smelling a case. Tamil Nadu election is next year, so ED says, okay we will start this year.. we will definitely take this matter to some kind of wild result. We will tarnish the people involved. Why (ED action) suddenly before the Tamil Nadu Assembly elections? This is a question the Court should ask. Why suddenly this allegation that Tamil Nadu excise department is corrupt?" he argued. .Senior Advocate Vikram Chaudhary also appeared for the TASMAC today. Additional Solicitor General SV Raju appeared for the ED. .[Read Live Coverage]