Tasmac case: Has Tamil Nadu Police never conducted nighttime raids, asks Madras HC

CHENNAI: Has the State police never conducted any searches during the night, the Madras High Court questioned on Tuesday, while hearing petitions filed by the State government and the Tamil Nadu State Marketing Corporation (Tasmac) challenging the Enforcement Directorate's raids over alleged money laundering.

A division bench of Justices SM Subramaniam and K Rajasekar held that the State has to fight against corruption. "It is the will of the public," they observed while hearing the case.

The assistant director of ED, Chennai zone, filed a counter affidavit to the petitions, stating they were premature and not maintainable by law, and were filed with the sole motive to derail the lawful investigation under the Prevention of Money Laundering Act (PMLA), 2002.

Even though the State has alternative remedies available under the PMLA framework, it knocked the doors of the court without exhausting those options, said the affidavit.

Further, the enforcement agency denied all the allegations levelled against it as baseless.

The Tasmac raids were carried out with proper legal authorisation and in full compliance with the provisions of the PMLA, the affidavit read, adding that the ED had initiated an investigation based on credible intelligence and multiple registered FIRs, which are scheduled offenses under the PMLA.

The ED also denied the State's allegations that the Tasmac officials and staff, including women, were detained for 60 hours until midnight. It submitted that proper rest, food, interpersonal interactions, and movement in and out of the premises were ensured. No staff, including female staff, were forced to stay, and all were permitted to go home at night, with safety measures in place.

After the submissions, Advocate General PS Raman, appearing for the State, sought time to file a reply to the counter.

A private individual, S Muralidharan, had moved a petition seeking to implead him as a party in the case, seeking not to entertain Tasmac's plea. He stated that the investigation into the financial irregularities shouldn't be set aside merely on procedural grounds and that it should continue in the interest of the general public.

Advocate Elephant G Rajendran also filed an implead petition.

After hearing all the parties, the bench posted the matter to April 8 for further hearing.

On March 6, ED sleuths conducted a surprise search operation at the Tasmac head office in Chennai and several district offices, alleging financial irregularities amounting to Rs 1,000 crore in the State-run liquor retailer.

The ED also alleged that the State was generating tainted money through private distilleries, with Tasmac officials involved in corrupt practices.

During their searches, which unfolded across three days and ended on March 8, ED sleuths detained officers of the Tasmac from the lowest level to the top, including women employees, subjecting them to interrogation and seizing their mobile phones, alleged the State.