Oct 14, 2025BusinessAsiaThe Hindu

Supreme Court questions whether ED is overstepping in Tamil Nadu liquor-scam probe

TASMAC wine shop in Tamil Nadu

The Supreme Court on Tuesday extended its stay on the Enforcement Directorate's (ED) investigation into the Tamil Nadu liquor retail scam, raising critical questions about whether the central agency is overstepping the state's investigative authority.

The case centers on allegations of irregularities in the Tamil Nadu State Marketing Corporation (TASMAC), which holds a monopoly on liquor retail sales in the state. The ED, which probes money laundering, registered cases against TASMAC officials. However, the state government has argued that the ED's probe intrudes on its domain, as the matter falls under state jurisdiction.

The Court's questioning signals a potential conflict between federal and state powers, echoing similar concerns in other states where the ED's expansive reach has been challenged. This case could set a precedent for balancing investigative boundaries between central and state agencies.

With the stay extended, the legal battle over jurisdictional boundaries continues to unfold, leaving the future of the probe uncertain.