Madras High Court Orders TASMAC to Respond to ED's Counter Affidavit by April 8
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Synopsis
The Madras High Court has ordered TASMAC to respond to the ED's counter affidavit regarding allegations of money laundering by April 8. The court has also instructed the Tamil Nadu Advocate General to respond by the same date, amidst claims of harassment and misconduct during the investigation.
Key Takeaways
- Madras High Court mandates TASMAC's response by April 8.
- ED accuses TASMAC of obstructing a money laundering investigation.
- Affidavit addresses claims of harassment against TASMAC employees.
- Search operations conducted legally with independent witnesses.
- Public interest in the investigation due to significant funds involved.
Chennai, April 1 (NationPress) The Madras High Court has mandated the Tamil Nadu State Marketing Corporation (TASMAC) to submit a rejoinder addressing the counter affidavit presented by the Directorate of Enforcement (ED) by April 8.
This order was issued by a division bench consisting of Justices S.M. Subramaniam and K. Rajasekar.
The court also directed the Advocate General of Tamil Nadu, P.S. Raman, to provide a response within the same timeframe.
In the 47-page counter affidavit filed on April 1, the ED alleged that TASMAC is obstructing a lawful investigation into suspected money laundering activities involving several of its officials and private entities.
The affidavit, endorsed by ED Assistant Director Vikas Kumar, also contested the maintainability of two writ petitions submitted by TASMAC, which aimed to declare the recent search and seizure operation at TASMAC's headquarters as illegal.
The ED firmly rejected TASMAC's claims that its employees faced harassment during the investigation, asserting that no employee reported any incidents of harassment or violation of human rights during the search.
According to the ED, TASMAC is a state-operated corporation managing significant public funds and boasting a considerable annual turnover. Hence, the inquiry into alleged money laundering is in the public’s broader interest.
The affidavit further disclosed that an Enforcement Case Information Report (ECIR) was registered based on multiple First Information Reports (FIRs) lodged by the Directorate of Vigilance and Anti-Corruption (DVAC). These FIRs involve accusations of corruption and malpractice against TASMAC officials and employees.
The complaints include instances of unaccounted cash discovered in liquor retail outlets and district managers’ offices, inflated liquor prices, bribery related to transfers and appointments, and questionable transactions between TASMAC officials and private breweries.
The ED asserted that the search operations were executed lawfully and transparently, conducted in the presence of two independent witnesses from the State Bank of India.
The agency emphasized that the operations proceeded peacefully and orderly, without any coercion, threats, inducements, or undue pressure on TASMAC staff.
Furthermore, the agency stated that all statements collected during the inquiry adhered to legal protocols, with none exceeding two and a half hours in duration.
Appropriate rest and breaks were reportedly provided to TASMAC employees throughout the process. The matter is set to be revisited by the High Court following TASMAC's submission of its rejoinder on or before April 8.
