Madras HC Bench recuses itself from hearing TASMAC plea against ED searches

A division bench comprising Justices M S Ramesh and N Senthilkumar of the Madras High Court on Tuesday recused itself from hearing the petitions filed by TASMAC and the Tamil Nadu government against the recent ED searches on the state-run liquor retailer.

When the petitions filed by TASMAC and the state government came up for hearing, the bench said it recused itself from hearing the case, but did not specify any reasons.

The bench had on March 20 directed the Enforcement Directorate, which conducted raids on the premises of Tamil Nadu State Marketing Corporation (TASMAC) earlier this month, to produce copies of FIR and Enforcement Case Information Report (ECIR) along with any other material which it relied upon against TASMAC.

 

Orally directing the ED not to proceed further pursuant to its raids at the TASMAC headquarters in the city, the bench posted to March 25, further hearing of the petitions filed by the liquor retailer and the state government against the searches conducted by ED.

According to ED, it had found serious financial fraud involving distillery companies and bottling entities through generation of unaccounted cash and illicit payments.

In its petition, TASMAC sought a direction to the ED not to harass its employees under the guise of investigation. It also sought a declaration that the ED's action of investigating the offence within the territorial limits of the State was violative of federalism.