Tasmac raid: Madras HC directs ED to submit predicate offence details
A division bench of Justice SM Subramaniam and Justice K Rajasekar heard the petitions moved by the State and Tasmac challenging the search proceedings of ED.
Madras High Court; Representative image
CHENNAI: The Madras High Court asked the Directorate of Enforcement (ED) to file the details of the predicate offence based on which the enforcement case information report (ECIR) was registered against Tasmac, alleging corruption to the tune of Rs 1,000 crore.
A division bench of Justice SM Subramaniam and Justice K Rajasekar heard the petitions moved by the State and Tasmac challenging the search proceedings of ED.
Senior counsel Vikas Singh, on behalf of Tasmac, submitted that the ED committed jurisdictional error by conducting the search proceedings at the office of Tasmac without obtaining consent from the State. Wondering on what grounds the ED conducted the raid, the counsel said the ED is not disclosing the details of the predicate offence based on which they searched.
The bench intervened and asked the enforcement agency to file the ECIR details based on which it conducted the search proceedings.
Advocate General (AG) PS Raman for the State submitted that the ED subjected the employees of Tasmac to a great violation of human rights, and the government has a responsibility to protect its employees. As per Section 54 of the Prevention of Money Laundering Act (PMLA), the State is obliged to assist ED, but the enforcement agency didn't communicate with the State and conducted the search without consent.
Justice SM Subramaniam asked if the State can cooperate with the ED now. Objecting to it, the AG said the agency sat at our office without consent, and how can we extend the cooperation, it is certainly an ego point.
The bench posted the matter to Wednesday for continuation of submission.
On March 6, the ED sleuths conducted a surprise search operation at the Tasmac head office and several other district offices based on the alleged money laundering charge. It was alleged that the State generated tainted money through the private distilleries.
The search unfolded for three days and ended on March 8. During the search, the ED sleuths detained Tasmac officers, including women employees, and seized their mobile phones, alleged the State, moving the HC challenging the proceedings.
