Overview

• The Madras High Court rejected petitions from the Tamil Nadu government and TASMAC challenging the legality of the Enforcement Directorate's raids conducted in March 2025.
• The court ruled that the ED's actions were lawful under the Prevention of Money Laundering Act (PMLA) and dismissed claims of political motivation behind the raids.
• The ED's investigation focuses on alleged financial irregularities at TASMAC, including overpricing, tender manipulation, and bribery, with estimated losses exceeding ₹1,000 crore.
• The court emphasized that judiciary's role is to assess legal evidence, not to adjudicate on political motives or federalism disputes raised by the state government.
• This decision clears the way for the ED to continue its probe into suspected money laundering tied to corruption cases registered by Tamil Nadu's Directorate of Vigilance and Anti-Corruption.