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Supreme Court Extends Stay on ED’s TASMAC Probe, Questions Encroachment on State Powers

The justices tied further hearing of the case to the pending review of the Vijay Madanlal ruling on the ED’s powers under the PMLA.

Overview

  • Continuing an interim order first granted in May, the bench restrained the ED from taking coercive steps such as searches, seizures or further investigation against TASMAC.
  • The court asked whether the ED’s investigation encroaches on the state’s right to probe, referencing Section 66(2) of the PMLA on sharing information with state agencies.
  • TASMAC and Tamil Nadu argued the ED raided the corporation’s headquarters without supplying the ECIR and raised privacy concerns over seizure and data extraction from officials’ phones.
  • The ED, represented by the Additional Solicitor General, said it uncovered incriminating material tied to large‑scale irregularities and alleged the state closed 37 FIRs to undercut the money‑laundering case.
  • The Supreme Court said TASMAC’s appeals will be heard after it decides review petitions challenging aspects of the 2022 Vijay Madanlal Choudhary judgment, which upheld non‑supply of the ECIR.