Supreme Court Pauses ED Probe Over Tamil Nadu Liquor Licenses, Asserting Federalism

The Supreme Court has stayed the Enforcement Directorate's (ED) investigation into Tamil Nadu's TASMAC over alleged corruption in liquor license grants. The court criticized the ED for overstepping its jurisdiction and violating federal principles. This decision is seen as a setback to alleged political misuse of the ED against the ruling DMK government.

The Supreme Court on Thursday intervened to halt the Enforcement Directorate's (ED) pursuit of a money laundering investigation involving TASMAC, the state-run liquor retailer in Tamil Nadu. The case centers around alleged corruption in granting wine shop licenses, with the court admonishing the ED for overstepping its bounds and infringing on the federal governance framework.

Chief Justice B R Gavai, leading the bench with Justice Augustine George Masih, issued the stay on the ED's probe, emphasizing concerns over the central agency crossing jurisdictional limits. The Tamil Nadu government's plea, supported by TASMAC, argued that the ED's methods violated constitutional rights and disrupted state sovereignty.

The ruling DMK party has welcomed this court order, framing it as a major pushback against what they describe as politically motivated actions by the BJP. Criticism of the ED's application of the Prevention of Money Laundering Act (PMLA) is not new and has previously been raised by numerous opposition parties, highlighting concerns over central overreach.

(With inputs from agencies.)