Overview

• The Supreme Court criticized the Enforcement Directorate (ED) for exceeding its authority and violating the federal structure by targeting Tamil Nadu's state-run TASMAC corporation.
• A stay was issued on the ED's money laundering investigation, with the court questioning the absence of a clear predicate offence under the Prevention of Money Laundering Act (PMLA).
• The Tamil Nadu government and TASMAC had challenged the Madras High Court's April 23 ruling that allowed the ED to continue its probe despite state-filed FIRs from 2014–2021.
• Chief Justice B R Gavai emphasized that criminal cases should target individuals, not state corporations, and demanded the ED submit an affidavit within two weeks explaining its actions.
• The ruling is seen as a significant judicial check on the ED's investigative practices, which have faced criticism for overreach and alleged political motivations.