ED accuses TASMAC of creating hurdles in investigation into money laundering charges

ED accuses TASMAC of hindering money laundering investigation, questioning legality of search operation, and denying harassment allegations by employees.

The Directorate of Enforcement (ED) has accused Tamil Nadu State Marketing Corporation (TASMAC) of attempting to create hurdles in a legitimate investigation being done regarding potential money laundering activities involving Tasmac officials and some private entities.

In a detailed counter affidavit filed before a Division Bench of Justices S.M. Subramaniam and K. Rajasekar on Tuesday, the ED questioned the maintainability of two writ petitions filed by Tasmac to declare the recent search and seizure operation carried out its headquarters as illegal.

Pointing out that Tasmac had also sought to restrain the ED from harassing its employees in the guise of investigation, the ED wondered how the corporation could file such writ petitions when no individual employee had alleged any kind of harassment or human rights violation.

After Additional Solicitors General S.V. Raju and AR.L. Sundaresan, assisted by ED Special Public Prosecutor N. Ramesh, reported that the counter affidavit had been served upon Advocate General P.S. Raman, the judges granted time till April 8 for Tasmac to file a rejoinder to the counter.

The 47-page counter affidavit, signed by ED Assistant Director Vikas Kumar, stated that TASMAC was a state-owned corporation handling huge amount of public funds with a substantial annual turnover and therefore, the investigation into money laundering charges serves larger public interest.

The officer told the court a Enforcement Case Information Report (ECIR) was registered based on multiple First Information Reports (FIRs) which the Directorate of Vigilance and Anti Corruption (DVAC) had booked against TASMAC officers and employees on charges of corruption and malpractices.

The FIRs were related to unaccounted cash found in the liquor retail vending shops and in offices of the TASMAC district managers, sale of liquor at higher prices, receipt of bribe for transfers and appointments, murky dealings between TASMAC officials and breweries for supplying liquor and so on.