TASMAC vs ED: Madras High Court to deliver verdict on April 23

The Madras High Court on Monday said that the verdict in the case filed by Tamil Nadu State Marketing Corporation (TASMAC) against the raids conducted by the Enforcement Directorate in its offices, from March 6 to 8, will be delivered on April 23. 

 

 

A division bench comprising justices S.M. Subramaniam and K. Rajasekar, after hearing the elaborate arguments in the three writ petitions filed by TASMAC and the state government, seeking to declare the search and seizure operations, by the ED, as illegal, reserved the orders for Wednesday. Advocate General P.S. Raman for the State government, senior counsel Vikas Singh and Vikram Choudhary argued for TASMAC. Additional Solicitor General S.V. Raju, assisted by ED Special Public Prosecutor N. Ramesh argued for the ED. 

 

 

 

Advocate Vikas Singh appearing for TASMAC argued that the ED had no jurisdiction to conduct searches at TASMAC headquarters in Chennai. He called it a complete abuse of power. Expressing serious concern about ED conducting searches on the basis of FIRs registered by the Directorate of Vigilance and Anti Corruption (DVAC) in the last few years against the lower level staff like depot managers and district managers or charges of corruption. 

 

“In a normal investigation, it should be the other way round. There is a case registered, you start an investigation on that. Here, it is the opposite. ED decides, they collect FIRs and then start an investigation. This is a unique case where ED does not even confirm the predicate offence. This is why a rejoinder is important, will show how bogus this case is. These FIRs are at the district manager level, nothing to do with head office. These are depot managers, too small a fry. The jurisdiction for ED to step in is not there in this case. I am not for once trying to argue that lordships should get into merits of the allegations. I am only saying the facts of this case is so brazen, that ED had no jurisdiction to enter the State of Tamil Nadu.” 

 

 

 

The Advocate General during his arguments said if the central agency is allowed unchecked then it would do the same with other state-owned undertakings. “They would then end up scouting for materials to implicate higher authorities of such institutions, thereby directly challenging the federal character of the country. “

 

Accusing the ED officials of indulging in human rights violations by detaining the women staff beyond midnight in the name of enquiry during the search operations, AG accused the ED for not seeking the assistance of the State government before the start of the raids. 

 

 

 

ED’s counsel and Additional Solicitor general Raju denied the accusations and refuted claims of any harassment of the TASMAC staff during the enquiry. He said the operations were “warranted and justified to unearth the money laundering activities.”

 

 

 

TASMAC and the state government had filed three writ petitions against the ED conducting searches before the Madras High Court before the Bench of Justices M.S. Ramesh and N. Senthilkumar. On March 20 the bench asked the ED to hold any further coercive action for the time being. But days later Justices Ramesh and Senthilkumar recused themselves from hearing the case. After this the case was transferred to the division bench headed by Subramaniam and Rajasekar. 

 

 

 

In the meantime, TASMAC went to the apex court seeking direction to transfer the case from the Madras High Court to some other state. But the petition was dismissed. However, the High Court expressed its anguish over the Tamil Nadu government filing a writ petition in the Supreme Court.

 

 

 

The ED has alleged over Rs. 1000 crore scam in TASMAC in connivance with the bottling companies in the state. The ED had already conducted searches in other government departments like TAMIN and TNMAWS. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Madras High Court on Monday said that the verdict in the case filed by Tamil Nadu State Marketing Corporation (TASMAC) against the raids conducted by the Enforcement Directorate in its offices, from March 6 to 8, will be delivered on April 23. 

 

 

 

A division bench comprising justices S.M. Subramaniam and K. Rajasekar, after hearing the elaborate arguments in the three writ petitions filed by TASMAC and the state government, seeking to declare the search and seizure operations, by the ED, as illegal, reserved the orders for Wednesday. Advocate General P.S. Raman for the State government, senior counsel Vikas Singh and Vikram Choudhary argued for TASMAC. Additional Solicitor General S.V. Raju, assisted by ED Special Public Prosecutor N. Ramesh argued for the ED. 

 

 

 

Advocate Vikas Singh appearing for TASMAC argued that the ED had no jurisdiction to conduct searches at TASMAC headquarters in Chennai. He called it a complete abuse of power. Expressing serious concern about ED conducting searches on the basis of FIRs registered by the Directorate of Vigilance and Anti Corruption (DVAC) in the last few years against the lower level staff like depot managers and district managers or charges of corruption. 

 

“In a normal investigation, it should be the other way round. There is a case registered, you start an investigation on that. Here, it is the opposite. ED decides, they collect FIRs and then start an investigation. This is a unique case where ED does not even confirm the predicate offence. This is why a rejoinder is important, will show how bogus this case is. These FIRs are at the district manager level, nothing to do with head office. These are depot managers, too small a fry. The jurisdiction for ED to step in is not there in this case. I am not for once trying to argue that lordships should get into merits of the allegations. I am only saying the facts of this case is so brazen, that ED had no jurisdiction to enter the State of Tamil Nadu.” 

 

 

 

The Advocate General during his arguments said if the central agency is allowed unchecked then it would do the same with other state-owned undertakings. “They would then end up scouting for materials to implicate higher authorities of such institutions, thereby directly challenging the federal character of the country. “

 

Accusing the ED officials of indulging in human rights violations by detaining the women staff beyond midnight in the name of enquiry during the search operations, AG accused the ED for not seeking the assistance of the State government before the start of the raids. 

 

 

 

ED’s counsel and Additional Solicitor general Raju denied the accusations and refuted claims of any harassment of the TASMAC staff during the enquiry. He said the operations were “warranted and justified to unearth the money laundering activities.”

 

 

 

TASMAC and the state government had filed three writ petitions against the ED conducting searches before the Madras High Court before the Bench of Justices M.S. Ramesh and N. Senthilkumar. On March 20 the bench asked the ED to hold any further coercive action for the time being. But days later Justices Ramesh and Senthilkumar recused themselves from hearing the case. After this the case was transferred to the division bench headed by Subramaniam and Rajasekar. 

 

 

 

In the meantime, TASMAC went to the apex court seeking direction to transfer the case from the Madras High Court to some other state. But the petition was dismissed. However, the High Court expressed its anguish over the Tamil Nadu government filing a writ petition in the Supreme Court.

 

 

 

The ED has alleged over Rs. 1000 crore scam in TASMAC in connivance with the bottling companies in the state. The ED had already conducted searches in other government departments like TAMIN and TNMAWS. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

India