Chennai: 

According to the report, TASMAC charged an excess of Rs 10 to Rs 30 per liquor bottle above the fixed price, and liquor manufacturers allegedly paid bribes to its officials. The report further mentions falsified purchase records and bribery linked to job transfers, bar licenses and other operations.

The ED stated that evidence was uncovered indicating direct connections between high-ranking TASMAC officials and liquor companies, with contracts allegedly awarded to the close associates of these top officials. The report also claims that TASMAC paid Rs 100 crore annually to transportation companies and suggested that over Rs 1,000 crore of unaccounted money may have circulated within TASMAC due to these irregularities.

The Madras High Court on Thursday directed the Enforcement Directorate (ED) not to take any action on the documents seized during the recent raids on the Tamil Nadu State Marketing Corporation (TASMAC) and has adjourned the hearing to March 25.

A three-day ED raid was conducted across 20 locations, including the head office of TASMAC, following which the agency released a report citing that the operation was based on multiple cases filed under the Prevention of Corruption Act, 1988.

In response to ED's actions, TASMAC filed three petitions in the Madras High Court, requesting a prohibition on the agency from taking action under the Prevention of Money Laundering Act (PMLA), 2002 without prior approval of the state government. The petitions further sought a ban on harassing TASMAC employees under the guise of investigation and demanded that the raids conducted between March 6 and 8, along with the seizure of documents, be declared illegal.

The case was heard by Justices M S Ramesh and N Senthilkumar. During the hearing, the Advocate General argued that the ED should have obtained permission from the state government before initiating the raids. To this, the judges questioned whether such prior approval was mandatory. Following this, the Tamil Nadu government stated its intention to withdraw the case.

The court was also informed that the ED's 60-hour-long investigation included questionable practices, such as instructing female employees to leave the premises only to demand their return at specific times, which was described as "barbaric".

The judges pressed the ED on whether the CCTV footage supported the investigation and questioned the necessity of conducting raids during the night. With the ED unable to clarify what documents were seized, the court ordered the agency to refrain from taking any further action and to provide a detailed response. The hearing was then adjourned to March 25.

This high-stakes case continues to draw attention as it probes into allegations of corruption and improper conduct within the state-run liquor distribution network.

TASMAC's legal counsel argued that the ED overstepped its authority by assuming that illegal money transfers took place. The lawyer further claimed that the ED was intimidating TASMAC officials under the pretext of investigation, asserting that only the director or deputy director of the ED has the legal authority to conduct such raids.

It was also argued that no concrete evidence supported the allegations of illegal money transfers against TASMAC officials. The defence contended that the ED cannot act without evidence, citing Section 17 of PMLA, which restricts investigations without substantiated proof. The lawyer further argued that while many countries rely on a single investigative agency for fraud and smuggling cases, India uniquely operates with two separate agencies, complicating matters.

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