Supreme Court extends stay of ED's money laundering probe against TASMAC

NEW DELHI: The Supreme Court on Tuesday extended its stay on the ED's money laundering probe against Tamil Nadu State Marketing Corporation (TASMAC) in the alleged Rs 21,000 crore scam, till the top court passes an order on the pending review pleas challenging certain provisions of the Prevention of Money Laundering Act (PMLA). A two-judge bench of Chief Justice of India BR Gavai and Justice K Vinod Chandran -- who was hearing the petitions filed by the State of Tamil Nadu and TASMAC challenging Madras High Court's rejection of its plea against searches conducted by the Enforcement Directorate on the TASMAC headquarters --posted the matter. The top court extended the stay on the probe by the ED, after being apprised by TASAMC regarding the non-supply of the Enforcement Case Information Report, which the Vijay Madanlal decision held that ECIR need not be supplied to the parties. During the hearing on Tuesday, senior advocate Kapil Sibal, representing TASMAC, submitted that the state vigilance had filed 47 FIRs against liquor outlet operators over allegations of corruption from 2014-21, but ED entered the scene in 2025 and raided the headquarters and took the phones and devices of the officers. Questioning the role of the ED, Sibal argued, The state will investigate corruption, and who is ED to investigate corruption. The senior lawyer further contended that'corruption' is an offence within the jurisdiction of the State. Corruption is the predicate offence. It is to be investigated by the State. CBI can investigate with the State's consent. But ED is investigating corruption. How can they do? Sibal asked. He further questioned, asking why they were raiding the corporation if the corruption was done by individuals. He also said that since the ECIR copy is not served, they are not aware of the allegations. Opposing the submissions of Sibal, Additional Solicitor General, S V Raju, appearing for the ED, argued thatthe central agency was not investigating corruption and was only probing money laundering, but the TASMAC was making wild allegations. Raju pointed out that the 'Vijay Madanlal Choudhary' judgment has held that ECIR need not be supplied to the accused. 'ED crossing all limits': SC stays money laundering probe against TASMAC Making serious allegations against the State that it was trying to protect the officers, the ED stated that the probe agency, while conducting the investigation,found evidence regarding money laundering in the case.The State vigilance itself has registered the FIR, and hence, the existence of predicate offence was undenied, said Raju. After hearing the submissions from Raju, the CJI asked ASG, What happens to the federal structure? Law and order have to be enforced within their own domain. Would it not amount to encroachment upon the right of the State to investigate? In every case, when you find that the state is not investigating the matter, you will go and do it yourself. What happens to Section 66(2)? the CJI asked. Replying to the queries of the court, Raju added that the ED has the power to search as per Section 17 PMLA if there are easons to suspect. ASG said that the search actually led to the discovery of materials. Did we wrongly suspect? We have found. Large-scale corruption. That corruption is sought to be concealed with the arguments on federalism, said the senior law officer. The bench finally observed that it is bound by the Vijay Madanlal Choudhary judgment -- delivered by a three-judge bench led by Justice A M Khanwilkar (Retd) -- which heldthat ECIR need not be supplied to the accused, and thereby it posted the matter for further hearing till the verdict is reviewed and a decision is finally taken.