Madras High Court Upholds ED Raids on TASMAC

The Madras High Court has dismissed petitions from TASMAC and the Tamil Nadu government challenging ED's raids. The court has allowed the ED to continue its investigation under PMLA, following claims of financial fraud involving distilleries and bottling firms.

The Madras High Court has dismissed petitions filed by the Tamil Nadu State Marketing Corporation (TASMAC) and the state government against raids by the Enforcement Directorate (ED) at state-run liquor retailer locations in March.

Justices S M Subramaniam and K Rajasekar formed the division bench that rejected the petitions, authorizing the ED to continue its investigation under the Prevention of Money Laundering Act (PMLA).

The ED has alleged significant financial fraud carried out by distillery and bottling companies, involving unaccounted cash and illicit payments. TASMAC's petition insisted that the ED refrain from harassing its staff and questioned the legality of the ED's operations conducted within Tamil Nadu's territorial limits.