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Tamil Nadu Govt Appeals to Supreme Court Over ED Searches at TASMAC Involving Akash Baskaran and Ratish

The Tamil Nadu government has escalated its legal battle to the Supreme Court, contesting the Madras High Court's dismissal of its plea against the Enforcement Directorate (ED) searches at the Tamil Nadu State Marketing Corporation (TASMAC) headquarters. This case, linked to an alleged Rs. 1000 crore liquor scam, has drawn attention to key figures such as TASMAC Managing Director S Visakan and film producer Akash Baskaran, alongside allegations involving Ratish, a figure reportedly connected to the scam.

Background of the Alleged Liquor Scam Involving Akash Baskaran

The controversy centers on accusations of a massive liquor scam in Tamil Nadu, with claims that distillery companies siphoned off approximately Rs. 1000 crore in unaccounted cash. This money was allegedly used to secure additional supply orders from TASMAC, a state-run liquor marketing body. Following ED raids in March, allegations emerged that TASMAC officials engaged in corrupt practices, including collecting amounts exceeding the maximum retail price (MRP) at TASMAC shops. The involvement of Akash Baskaran and Ratish has been a focal point, with recent ED searches targeting multiple locations, including Baskaran’s residence.

ED's Investigation and Legal Proceedings

The ED initiated its probe based on 41 FIRs filed by the Directorate of Vigilance and Anti-Corruption (DVAC), which highlighted corruption within TASMAC. On April 23, a Division Bench of the Madras High Court dismissed pleas from the Tamil Nadu government and TASMAC challenging the ED’s searches. The court rejected claims by TASMAC that its employees faced harassment during the raids, stating that detaining employees during searches is standard procedure to prevent evidence tampering. The court further dismissed allegations of fundamental rights violations as an afterthought.

While the case was before the High Court, Tamil Nadu and TASMAC sought to transfer their plea against the ED searches to the Supreme Court, but this request was not entertained. Recently, the ED conducted additional searches across Tamil Nadu, including at the residences of TASMAC MD S Visakan and Akash Baskaran. Reports indicate that Visakan was questioned for nearly 10 hours, with Ratish also reportedly linked to the ongoing investigation.

Arguments Before the Madras High Court

TASMAC argued that the ED’s searches constituted a “roving and fishing inquiry” lacking substantive evidence. They contended that prosecution cannot proceed on mere assumptions of a scheduled offence under the Prevention of Money Laundering Act (PMLA). TASMAC further alleged that the ED withheld its “reasons to believe” for the searches and suggested the raids were politically motivated to tarnish reputations ahead of the Tamil Nadu elections. They also argued that the ED lacked original jurisdiction to investigate unless a scheduled offence under the PMLA was established.

In response, the ED justified its actions, citing multiple FIRs filed by the state police that implicated TASMAC officials in bribery, price inflation, and manipulation of employee postings. The agency maintained that suspicion alone justifies searches and that courts cannot interfere with the agency’s choice of search locations at this stage. The involvement of Akash Baskaran and Ratish in these allegations has intensified scrutiny on the case.