Are you not encroaching on the state’s rights? SC quizzes ED in TASMAC case

SC extends stay over ED probe against TASMAC in liquor shop licences scam

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The Supreme Court on Tuesday extended its interim protection restraining the Enforcement Directorate (ED) from taking any coercive action—including search, seizure or further investigation—against the Tamil Nadu State Marketing Corporation (TASMAC) in connection with an alleged liquor retail scam.

A bench of Chief Justice of India (CJI) B R Gavai and Justice K Vinod Chandran questioned whether the ED's intervention risked infringing upon the investigative powers of the state government. “Would it not amount to encroachment upon the right of the state to investigate? In every case, when you find that the state is not investigating, will you take it upon yourself? What happens to Section 66(2)?” the bench asked.

The bench extended its earlier May 22 order that had stayed the ED's probe into alleged money laundering linked to the grant of liquor shop licences. At that time, the court had said the central agency appeared to be "crossing all the limits" and undermining the federal structure.