In a sharp rebuke to the Enforcement Directorate (ED), the Supreme Court has criticized the central agency for “crossing all limits” during its recent raids on TASMAC, Tamil Nadu’s state-run liquor corporation. The court observed that such actions infringe upon the principles of federalism and directed the ED to suspend its operations for now. A bench led by Chief Justice BR Gavai noted that while individual cases may be investigated, overreach on state-run corporations without substantial evidence raises serious concerns. The DMK-led state government welcomed the order, calling it a setback to the BJP’s alleged misuse of federal agencies.

The ED’s raids, conducted in March and again last week, targeted alleged irregularities in liquor transportation, bar license allocations, and unaccounted cash transactions involving distilleries and bottle suppliers. According to the ED, over ₹1,000 crore in unaccounted cash was discovered, along with suspicious data involving tender processes and pricing surcharges. However, senior advocate Kapil Sibal argued that the agency had cloned mobile phones and overstepped legal boundaries, prompting the apex court to intervene. The Tamil Nadu government had earlier challenged a Madras High Court order that permitted ED actions, seeking to protect the autonomy of its state-run entities.

Amid political tensions ahead of upcoming state elections, the DMK has accused the ED of acting on behalf of the BJP to discredit rival parties. Excise Minister S Muthusamy claimed the agency’s actions were driven by “ulterior political motives” and said no concrete proof of wrongdoing had emerged. Meanwhile, BJP leader K Annamalai dubbed Tamil Nadu minister V Senthil Balaji as the “kingpin” of the alleged ₹1,000 crore scam—claims Balaji has denied, asserting that all TASMAC purchases and tenders follow transparent procedures based on multi-year averages.