The Supreme Court strongly criticized the Enforcement Directorate (ED) for overstepping its limits during an investigation into TASMAC (Tamil Nadu State Marketing Corporation).
Chief Justice B.R. Gavai questioned how a government-owned corporation could even be accused of committing a criminal offence.
The Court said the ED was violating the federal structure by interfering in a matter already being handled by the State.
The case was brought by Tamil Nadu and TASMAC after the Madras High Court refused to stop the ED’s investigation and raids.
TASMAC's lawyer claimed employees’ phones were cloned, raising privacy concerns.
Kapil Sibal, representing Tamil Nadu, pointed out that the State itself had already registered 41 FIRs against individuals involved in liquor-related corruption.
The Chief Justice emphasized that while individuals can be prosecuted, a corporation cannot be charged with a criminal offence in this manner.
The ED argued it was investigating a ₹1,000 crore fraud involving politicians.
Supreme Court asked what triggered ED’s involvement if State was already investigating.
The ED asked for more time to respond and was granted two weeks.
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