The
Supreme Court on Thursday stayed further proceedings by the Enforcement
Directorate (ED) in its ongoing investigation into the Tamil Nadu State
Marketing Corporation (Tasmac), with Chief Justice of India BR Gavai sharply
criticising the agency’s conduct.
“You may register cases against individuals...
but corporations? Your ED is crossing all limits,” CJI Gavai said during the
hearing.
A
bench led by CJI Gavai issued notice to the ED, returnable after the court’s
summer vacation, and ordered a stay on the agency’s actions until further
orders.
“Issue notice, returnable after vacation.
Meanwhile, stay granted of further proceeding,” the CJI stated.
The observations were made during the hearing of a
petition filed by the Tamil Nadu government, which challenged the ED’s March 14
and May 16 raids under the Prevention of Money Laundering Act (PMLA).
Appearing
for the state, Senior Advocate Kapil Sibal argued that the ED had seized and
cloned mobile phones of Tasmac officials during the raids, despite the state’s
own Directorate of Vigilance and Anti-Corruption (DVAC) having already filed 41
FIRs between 2014 and 2021 related to alleged corruption.
Sibal
contended that the ED was unjustifiably pursuing a corporation rather than individuals,
violating principles of federalism and due process.
The ED conducted fresh searches on May 16 across ten
premises in Tamil Nadu, as part of the ongoing probe. The Tamil Nadu
government, however, maintains that the central agency is encroaching on its
jurisdiction.
The court will take up the matter again after the
summer recess.