The Supreme Court has put a hold on the Enforcement Directorate’s (ED) money laundering investigation into TASMAC until a decision is made on the review of certain provisions of the Prevention of Money Laundering Act (PMLA). The move comes after Tamil Nadu challenged a Madras High Court ruling that had allowed the ED to probe alleged financial irregularities worth around ₹1,000 crore in the state-run liquor distribution network.
A bench comprising Chief Justice B. R. Gavai and Justice K. Vinod Chandran converted the earlier interim relief into a complete stay, directing that no further action be taken by the ED in the matter until the review petition on the “Vijay Madanlal” verdict is resolved. During the hearing, CJI Gavai expressed concern over the prolonged delay in addressing the review petition, noting that it has been pending for over three years.
The Court also raised questions about whether the ED’s probe was intruding on the jurisdiction of the State police, a point highlighted by Tamil Nadu’s counsel, Senior Advocate Kapil Sibal. The state had challenged the legality of ED raids conducted in March 2025, alleging misuse of authority, tender irregularities, and overpricing by TASMAC officials.
Till the time PMLA review is decided, TASMAC and its officials are protected from any further coercive action by the ED in connection with this case.
The post Supreme Court stays ED’s money laundering probe against TASMAC pending PMLA review appeared first on India Legal.