Madras High Court Instructs ED to Halt TASMAC Probe Until March 25
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Synopsis
The Madras High Court has ordered the ED to pause its investigation into TASMAC related to a money laundering case until March 25. The court's decision follows a challenge from TASMAC against the ED's recent searches at its headquarters.
Key Takeaways
- The Madras High Court has directed the ED to halt its TASMAC investigation.
- The case is set for a hearing on March 25.
- TASMAC challenged the ED's search operations.
- The Tamil Nadu government seeks clarity on ED's jurisdiction.
- Concerns raised over employee treatment during the ED's action.
Chennai, March 20 (NationPress) The Madras High Court has verbally instructed the Enforcement Directorate (ED) to suspend its investigation into the Tamil Nadu State Marketing Corporation (TASMAC) concerning an alleged money laundering case until the upcoming hearing on March 25.
A division bench consisting of Justice M.S. Ramesh and Justice N. Senthilkumar delivered this directive on Thursday while reviewing a petition submitted by TASMAC, contesting the recent searches conducted by the ED at its headquarters.
The court mandated the ED to file a counter to TASMAC's petition.
Alongside TASMAC's petition, the Tamil Nadu government has also approached the court, requesting a declaration that the ED's authority to investigate money laundering offenses within the state without its consent infringes upon the principles of federalism and the separation of powers. However, the court observed that the relief sought was overly broad and instructed the state to revise its request.
Advocate General P.S. Raman assured the bench that the state would amend its plea accordingly.
During the proceedings, Senior Advocate Vikram Chaudhri, representing TASMAC, scrutinized the ED's execution of search and seizure operations.
Referencing Section 17(1) of the Prevention of Money Laundering Act (PMLA), he argued that any such search must be grounded in written records justifying the reasons for the action. He contended that the ED had not adhered to these procedural mandates in this instance.
Chaudhri further accused the ED's actions of being an invasion of privacy, as officers entered TASMAC’s premises, confiscated documents, and seized employees’ mobile phones. He stressed that the ED lacked the authority to indiscriminately take documents from the office. Furthermore, he argued that the scope of the seizure should be proportional to the alleged offense.
Emphasizing the repercussions on TASMAC employees, he informed the court that staff members were detained for 60 hours and that female officers were sent home late at night, disregarding their rights and well-being.
The division bench inquired whether the ED possessed the authority to detain the entire office based solely on materials associated with a few individuals.
It also noted that while the ED claimed to have sufficient evidence, TASMAC expressed concern that such materials had not been shared with them.
Additional Solicitor General A.R.L. Sundaresan, representing the ED, refuted the allegations. He maintained that the ED had allowed employees to leave and that it had adequate material to substantiate the seizures.
Both the Tamil Nadu government and TASMAC had previously approached the Madras High Court against the searches executed by the ED at the TASMAC headquarters between March 6 and March 8. The case has now been postponed to March 25, when further arguments will be presented.
