The state government and TASMAC challenge the Enforcement Directorate's raids, questioning their legality
The Tamil Nadu government, along with the Tamil Nadu State Marketing Corporation (TASMAC), has filed a petition in the Madras High Court challenging the raids conducted earlier this month by the Enforcement Directorate (ED). The raids were carried out at various locations associated with TASMAC, which holds a state monopoly over the sale of alcoholic beverages.
The state government and TASMAC have jointly expressed concerns over the raids, calling them "unwarranted" and questioning the legality of the ED's actions. The petition, filed on Wednesday, seeks to challenge the agency’s conduct during the raids and the seizure of documents and other materials. The Tamil Nadu government argues that the ED’s actions were conducted without adequate legal justification and have disrupted the functioning of the state-owned corporation.
TASMAC, which manages and operates the sale of liquor across Tamil Nadu, has also raised concerns regarding the adverse effects of these actions on its business operations. The corporation, which is a major revenue earner for the state, fears the raids may be politically motivated and could negatively impact its image.
The ED's actions are reportedly part of a larger investigation into alleged money laundering related to the liquor trade, though no specific charges have been formally filed against TASMAC or its officials. The raids earlier this month followed inquiries into the financial activities of certain private entities involved in the liquor business in Tamil Nadu.
The Madras High Court is expected to hear the petition soon, as the Tamil Nadu government seeks clarity on the ED’s authority and aims to protect the functioning of TASMAC amidst the ongoing scrutiny. The case has drawn considerable attention in political and business circles in the state.
