Madras HC Directs ED To Halt Proceedings Related To TASMAC Premises Searches

The Madras High Court, on Thursday, reviewed writ petitions submitted by the Tamil Nadu State Marketing Corporation Limited (TASMAC), which sought judicial intervention against the Enforcement Directorate’s investigation under the Prevention of Money Laundering Act (PMLA).

The petitions emphasized concerns over potential procedural overreach and alleged undue harassment of TASMAC employees under the pretense of inquiry.

Judicial Intervention

The High Court issued a directive instructing the ED to halt all ongoing proceedings related to its recent searches at TASMAC premises. Furthermore, the agency has been mandated to file a counter affidavit justifying its actions. The case has been adjourned until March 25, allowing time for legal arguments and submission of evidentiary materials.

Judicial Oversight & Accountability Measures

A division bench comprising Justices M.S. Ramesh and N. Senthilkumar has ordered the ED to furnish details regarding the First Information Reports (FIRs) that provided the basis for its investigative actions. Concurrently, the Tamil Nadu government has been instructed to submit CCTV footage documenting the searches conducted over a 3-day period. These measures aim to enhance transparency and assess the legality of the investigative process.

BJP’s Protest & Accusations

The Tamil Nadu Bharatiya Janata Party (BJP) has taken an assertive stance against alleged financial irregularities within TASMAC, organizing a large-scale protest against the state-run entity. During the demonstration on Monday, several BJP leaders—including K. Annamalai and Tamilisai Soundararajan—were detained by the Tamil Nadu Police.

Annamalai, in his media address, criticized the law enforcement authorities, alleging their subservience to the ruling Dravida Munnetra Kazhagam (DMK) government.

“Some officers have become stooges of the DMK. Instead of wearing a police uniform, they might as well don DMK attire and engage in politics. Their primary objective appears to be appeasing the Chief Minister from morning to evening. Many of our party members have been arrested. It is legally impermissible to detain women beyond 6 PM, yet they were held until 7 PM. The top police leadership’s conduct is nothing short of disgraceful,” stated Annamalai.

Furthermore, he asserted that TASMAC has been a persistent source of financial misconduct under DMK governance. “The 2024 Lok Sabha election campaign of the DMK was sustained through revenue generated from alcohol sales, and they intend to employ the same model for the 2026 Assembly elections,” he alleged.

Detentions & Allegations Of Police Misconduct

Tamilisai Soundararajan, another senior BJP leader detained during the protest, condemned the authorities for violating established legal procedures regarding the treatment of female detainees.

“Our release was secured only after we actively protested. A female party worker fainted due to the stress of prolonged detention beyond legally permissible hours. The authorities seem intent on breaking our morale to discourage further demonstrations. However, they will not succeed. Our campaign against corruption will continue unabated,” she affirmed.

While the primary protest was staged outside TASMAC headquarters in Chennai, police preemptively detained Soundararajan at her residence and placed several other BJP functionaries, including Vinoj P. Selvam, under house arrest.

Govt’s Response

In response to the allegations, Tamil Nadu Minister V. Senthil Balaji categorically denied any wrongdoing within TASMAC’s financial operations. He criticized the ED’s assertions of a ₹1,000 crore corruption scandal, dismissing them as unsubstantiated.

“The Enforcement Directorate has reiterated an accusation that was originally made by an individual without any corroborative evidence. There is no substantive basis for this claim. The state government will address these legal challenges through appropriate judicial channels,” he asserted.

Balaji further emphasized that TASMAC functions with full financial transparency and remains accountable to regulatory scrutiny.