SC Stays ED’s TASMAC Investigation
The Supreme Court of India has paused the Enforcement Directorate’s investigation into the Tamil Nadu State Marketing Corporation (TASMAC). This decision comes amid claims that the ED is overstepping its authority and undermining the federal structure of governance. The court questioned the legitimacy of prosecuting a corporation instead of individual officials. This case marks ongoing concerns about corruption and financial mismanagement within TASMAC, which operates around 7,000 liquor outlets in Tamil Nadu.
Background of TASMAC
TASMAC is a government-owned entity responsible for the retail sale of liquor in Tamil Nadu. Established to regulate and control the sale of alcohol, it has become source of revenue for the state. The corporation’s monopoly status raises concerns about transparency and accountability in its operations.
Enforcement Directorate’s Investigation
The ED’s investigation focuses on alleged financial irregularities linked to TASMAC. The probe was initiated following multiple FIRs filed by the Tamil Nadu Vigilance Department. These FIRs allege various corrupt practices, including overcharging customers and bribery among officials. The ED claims to have uncovered fraud amounting to Rs 1,000 crore involving several politicians.
Corruption Allegations
Corruption allegations against TASMAC include kickbacks from distillers to officials and irregularities in the tender process. Reports indicate that officials manipulated transport and bar licence tenders to favour specific companies. Evidence suggests that applicants without proper documentation were awarded tenders, raising serious questions about the integrity of the procurement process.
Findings of the ED
The ED’s investigations revealed manipulation in tender allocations. They discovered discrepancies in KYC details and evidence of single-applicant bids for tenders. The agency also identified collusion between distilleries and bottling companies, leading to inflated expenses and bogus purchases. This fraudulent activity reportedly generated over Rs 1,000 crore in unaccounted cash.
Political Context
The investigation occurs against a backdrop of political tension in Tamil Nadu, with upcoming Assembly elections. Chief Minister M K Stalin has accused the central government of attempting to undermine the state’s interests. The ED’s actions are perceived by some as politically motivated, intensifying the ongoing rivalry between the ruling DMK and the opposition BJP.
Implications for Federal Structure
The Supreme Court’s remarks on the federal structure highlight the delicate balance of power between state and central authorities. The court’s decision to stay the ED’s inquiry raises questions about the jurisdiction of central agencies in state matters. This case could set a precedent for future investigations involving state-run entities.
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