Madras HC rejects pleas of TN govt, TASMAC; upholds ED probe
Procedural flaws are no reason to set aside an investigation or its findings, said the high court division bench and allowed ED to continue its probe
The Madras high court, on April 23, 2025, dismissed petitions by the Tamil Nadu government and TASMAC seeking to halt the Enforcement Directorate’s (ED) searches at TASMAC’s headquarters, ruling that “procedural flaws are no reason to set aside an investigation or its findings.”
The division bench of Justices SM Subramaniam and K Rajasekar allowed the ED to continue its probe under the Prevention of Money Laundering Act (PMLA), 2002, based on evidence of financial irregularities exceeding ₹1,000 crore, while directing strict adherence to PMLA safeguards and ordering TASMAC officials to fully cooperate.
No injunction can be imposed on the ED’s investigation under the Prevention of Money Laundering Act (PMLA), 2002, ruled the division bench. The court further directed TASMAC officials to extend full cooperation to the investigating agency.
No violations
While dismissing the pleas, the bench emphasised that the ED must strictly adhere to the PMLA’s provisions and procedural safeguards to ensure no violations occur during the investigation.
Also read: ED defends TASMAC HQ raid in Madras High Court
This verdict overrules the state’s allegations of illegal searches and procedural lapses, allowing the ED to proceed with its investigation but ensuring that it complies with legal protocols at the same time.
Political motives?
Addressing the main allegation of political motives raised by the petitioners, the court clarified that it cannot examine such claims, stating, “Whether the court can examine it? Definitely not. It is not the duty of a court of law. The right place to place this submission is before the people. Eventually, what matters most is the will of the people.”
The bench further noted that the offence of money laundering is against economic justice, and a few procedural inconveniences cannot outweigh the need for investigation.
Also read: TASMAC issue: Madras HC directs ED not to proceed further
Consequently, the court granted the ED liberty to proceed with the inquiry, reinforcing that procedural lapses do not invalidate the legitimacy of the investigation.
