New Delhi, 22 May

The Enforcement Directorate is crossing "all the limits" and violating the federal concept of governance, the Supreme Court on Thursday said while staying the money laundering probe against Tamil Nadu-run liquor retailer TASMAC over alleged corruption in grant of wine shop licences.

Issuing notice to the ED on pleas filed by the Tamil Nadu government and the Tamil Nadu State Marketing Corporation (TASMAC), a bench comprising Chief Justice B R Gavai and Justice Augustine George Masih told Additional Solicitor General S V Raju, appearing for the anti-money laundering probe agency, that “Your ED is crossing all the limits.”

“The Enforcement Directorate is violating the federal concept (of governance),” the bench observed, adding that the ED’s probe against the state-run TASMAC will not proceed in the meantime.

The law officer opposed the order, saying the issue involved corruption over Rs 1,000 crore and the ED is not crossing the limits “at least in this case.”

The bench took note of the submissions of senior advocates Kapil Sibal and Amit nand Tiwari that the state itself has lodged over 40 FIRs in cases related to allotment of liquor shop licences from 2014 and now the ED jumps in the picture and raids the TASMAC.

“How can you raid the state-run TASMAC,” the bench asked.

The DMK-run state government and TASMAC moved the top court against the raids conducted by the ED at the premises of TASMAC.

The pleas challenged an April 23 order of the Madras High Court dismissing its pleas giving the go ahead for the ED action.

The ED was allowed to proceed with its action under the Prevention of Money Laundering Act (PMLA).