Madras HC to deliver verdict on ED raids on Tasmac on April 23

CHENNAI: The Madras High Court will deliver verdict on Wednesday on petitions filed by the Tamil Nadu State Marketing Corporation (Tasmac) and the state government against the Enforcement Directorate (ED) over recent raids conducted at Tasmac premises under the Prevention of Money Laundering Act (PMLA). A division bench of justices SM Subramaniam and K Rajasekar on Monday reserved the orders stating it would be pronounced on April 23.

During the arguments, senior counsels Vikram Chaudhary and Vikas Singh, appearing for Tasmac, questioned the rationale behind the ED conducting raids when the entity was not an accused in any of the 42 FIRs cited by the agency to proceed with its action under PMLA.

They said the ED failed to provide the “reasons to believe” as per the Act and did not furnish copies of the FIRs it relied upon to initiate action. Advocate General PS Raman, representing the state, accused the ED of committing human rights violations by detaining officials until midnight. Additional Solicitor General (ASG) SV Raju, appearing for the ED, said the agency proceeded based on FIRs containing predicate offences under the Prevention of Corruption Act.