News India Live, Digital Desk: High Court: In a major development, the Enforcement Directorate (ED) today conducted raids simultaneously at several places in Chennai, including the residence of Visakan IAS, Managing Director of Tamil Nadu State Marketing Corporation (TASMAC). The raid was conducted under the investigation of alleged financial irregularities worth Rs 1,000 crore under the state liquor monopoly.
High Court cleared ED investigation
The raids were conducted after an important decision by the Madras High Court, with the validity of the previous search of the ED conducted at TASMAC headquarters between March 6 and 8. A division bench of Justice SM Subramaniam and Justice K. Rajasekhar dismissed the petitions filed by both the Tamil Nadu government and the TASMAC management, challenging the jurisdiction of the ED in the case.
The court clearly stated that the ED’s action was “in national interest” and allowed the agency to continue its investigation under the Money Laundering Act (PMLA). This judicial support is a major setback for the state government, which strongly opposed the intervention of the central agency as “state affairs”.
Raids continue in many cities
ED teams along with Central Reserve Police Force (CRPF) personnel were conducting search operations at several major places across the city. The main center of today’s action was the luxurious CR Puram residence of TASMAC MD Visakan IAS in Manapakkam. Also, another team raided the offices of SNJ Licker Company in Kalyanpuram, Choolamedu.
The action extends to commercial and residential complexes in Tenampet, T. Nagar, Anna Salai, Besant Nagar and Chettupattu. Sources suggest that investigators are carefully examined by financial documents, digital equipment and property records to detect potential funds and to detect hidden assets.
1,000 crore scam surfaced
The current investigation has started with 45 different FIRs recorded by TASMAC and state agencies over the years. Initial investigation suggests that the systematically more price of liquor bottles is a complex trap of financial disturbances associated with alleged bribery at various levels of administration, and at various levels of administration.
ED officials suspect that a well -organized network of government officials, private contractors and middlemen rigged public funds through fake companies and fake challans. The functioning reportedly included artificially increasing the purchase cost and diverting the difference amount through layered transactions, which eventually caused an estimated loss of Rs 1,000 crore to the government exchequer.
Political earthquake fears
Today’s developments are likely to create a stir in the political corridors of Tamil Nadu. The ruling DMK government, which has been continuously saying that the operation of TASMAC comes under the jurisdiction of the state, is now facing the possibility of increasing the scope of investigation, which is likely to be involved in senior officials.
Political observers suggest that the Central Agency may be encouraged to further further aggressively by the High Court to give clear support by the High Court. This has happened in such a sensitive time when the state government is already struggling with the allegations of the opposition of administrative mismanagement in the liquor sector.
What next in investigation?
After the legal obstacles are removed, the ED is expected to intensify its investigation. Sources in the agency said that there are plans to call several existing and former TASMAC officials for detailed inquiry in the coming days. There are also indications that the scope of investigation can also include bank transactions related to suspects and auditing of benami property.
Financial forensic experts are allegedly assisting ED in finding the movement of suspected funds in several areas. If concrete evidence of money laundering is revealed during the ongoing search, the agency can consider attachment of property and freeze bank accounts.
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