The Tamil Nadu State Marketing Corporation (TASMAC) has challenged the Enforcement Directorate’s (ED) raid proceedings before the Madras High Court, arguing that the agency exceeded its jurisdiction under the Prevention of Money Laundering Act (PMLA). During the hearing on Wednesday, senior counsel representing TASMAC contended that the ED had overstepped its authority and violated procedural norms.The counsel emphasized that the ED’s investigation must be limited to scheduled offences under the PMLA and that it cannot conduct independent inquiries beyond these offences. “If the registered scheduled offence is closed by the concerned agency, the ED must also close its proceedings. In this case, there were no scheduled offences, yet the ED conducted raids and withheld the Enforcement Case Information Report (ECIR), citing confidentiality,” the counsel argued. It was also highlighted that the Supreme Court had previously ruled that reasons for search and seizure must be disclosed to affected parties, a principle allegedly not followed in TASMAC’s case.
A division bench comprising Justices SM Subramaniam and K Rajasekar heard the petitions filed by the State government and TASMAC, contesting the ED’s actions. Senior counsel Vikram Chaudhary, in his continued arguments, maintained that the raids were illegal and infringed upon the privacy of TASMAC officials. The case is set to continue as the court deliberates on the agency’s jurisdiction and procedural adherence.
