TASMAC Case: Supreme Court Slams ED for Overreach, Imposes Interim Stay on Investigation
In a significant development, the Supreme Court of India has imposed an interim stay on the Enforcement Directorate (ED)’s investigation into the TASMAC case, sharply criticizing the agency for acting beyond its jurisdiction and in violation of federal principles.
The case revolves around allegations by the ED that nearly ₹1,000 crore worth of irregularities had taken place in Tamil Nadu’s state-run TASMAC corporation. Following these claims, the ED conducted searches and launched a probe, sparking strong opposition from the Tamil Nadu government.
In response, the state government filed a plea in the Madras High Court, seeking a stay on the ED’s investigation. However, the High Court dismissed the plea, leading the state to escalate the matter to the Supreme Court.
Appearing for the Tamil Nadu government, Senior Advocates Kapil Sibal and Mukul Rohatgi argued that the alleged irregularities from 2014 to 2021 were already being investigated by the State Vigilance and Anti-Corruption Department, which had filed 41 FIRs and was actively pursuing the case. They questioned the need for a parallel investigation by the ED in 2025, suggesting it was a case of politically motivated overreach.
The Supreme Court accepted these arguments, remarking that the ED was “operating beyond its limits” and cautioned that such actions should not undermine the federal structure of the Constitution.
The court’s interim stay on the ED’s probe has been widely seen as a legal and political victory for the Tamil Nadu government — and more broadly, for non-BJP ruled states across India that have frequently raised concerns over the misuse of central investigative agencies.
As one media outlet quipped, the way the ED has been functioning, “a film could be made about its revenge-driven investigations.” For now, the ruling offers a moment of relief and a reassertion of federal rights in a democracy.
