The Madras High Court on Wednesday upheld the legality of raids conducted by the Enforcement Directorate (ED) at the Tamil Nadu State Marketing Corporation (TASMAC) headquarters from March 6 to March 8.

A Bench comprising Justices SM Subramaniam and K Rajasekar dismissed petitions filed by TASMAC and the Tamil Nadu government challenging the raids.

Rejecting the argument that the searches were politically motivated, the Court emphasized that it is not within the judiciary’s purview to examine or comment on political motivations behind investigative actions.

“Can a court of law delve into whether political forces are at play, or participate in political games? Certainly not. That is not the function of the judiciary. Courts are not the forum for such determinations,” the Bench observed.

The judges further noted that changes in political power often lead to accusations and counter-accusations, but courts are only concerned with evaluating legal evidence and ensuring justice is upheld, regardless of the political party involved.

“We are here to assess the material before us, identify if any offence has been committed, and apply the law impartially. The electorate is the ultimate judge when it comes to political motives. The will of the people is paramount,” the Court held.

In response to concerns about the inconvenience caused to TASMAC employees during the raids, the Court acknowledged the disruption but maintained that such inconveniences cannot outweigh the need for accountability in financial crimes.

“Money laundering is a crime against the nation. While employees being detained or sent home at odd hours may be unfortunate, such consequences are outweighed by the broader interest of economic justice. The Prevention of Money Laundering Act (PMLA) serves this vital purpose,” the judgment stated.

The ED raids stemmed from allegations of financial irregularities exceeding ₹1,000 crore, including overpricing of liquor, manipulation of tenders, and bribery. The agency launched the investigation based on 41 to 46 first information reports (FIRs) previously registered by TASMAC and the State government against TASMAC officials.

While TASMAC and the DMK-led State government accused the ED of overreach and alleged that the raids were illegal and oppressive, the ED, represented by Additional Solicitor General SV Raju, firmly denied any harassment of TASMAC officials. Raju argued that the searches were necessary and justified in the context of serious money laundering suspicions.

Senior Advocates Vikram Chaudhary and Vikas Singh appeared for TASMAC, and the State was represented by Advocate General PS Raman.

The case was initially heard by Justices MS Ramesh and N Senthilkumar, who, on March 20, had orally advised the ED to refrain from coercive action. That Bench also expressed concern about the ED reportedly detaining TASMAC employees for over 60 hours. However, the judges later recused themselves from the case, which was then reassigned to Justices Subramaniam and Rajasekar.

The matter also reached the Supreme Court briefly, when the State sought a transfer of the case following the recusal. However, the plea was withdrawn after the apex court indicated reluctance to entertain the transfer request.