'Not Trying To Protect TASMAC, Won't Close Predicate FIRs': State To Madras High Court On Apprehension Of PMLA Action Being Rendered Infructous

The Tamil Nadu government on Thursday assured the Madras High Court that it is not trying to "protect" TASMAC, a State-owned alcohol vending enterprise, in the alleged ₹1,000 crores liquor scam.While seeking adjournment in a PIL for CBI probe into the alleged TASMAC scam, which is already under scanner of the Enforcement Directorate, Advocate General PS Raman undertook that the State will not circumvent the PMLA action by dropping the predicate offence against TASMAC.For context, the Supreme Court in Pavana Dibbur v. ED ruled that if predicate offence is dropped, proceedings under PMLA will not stand.During the hearing, vacation bench of Justice GR Swaminathan and Justice V Lakshminarayan expressed reluctance to adjourn the matter, remarking that the State has been identifying itself with TASMAC. "What if State closes all predicate offences? This writ petition will become infructuous if you close predicate offences..." the Judge orally remarked.AG Raman however claimed that a wrong impression was being given and the State was only trying protect Federalism.When the Court asked if the State would give an undertaking not to close the FIRs till the disposal of the current plea, AG Raman said that he would ask the Home Secretary not to close the FIRs in connection with the alleged scam.The Court then recorded the AG's submission and adjourned the case by 3 weeks. The Court also asked the State to file a status report regarding the investigation by the next date of hearing.The petition was filed by Venkatachapathy, an advocate, seeking transfer of the FIRs filed against TASMAC and its officials to the CBI and to direct CBI to take cognizance of the large scale corruption of 1000 crore by TASMAC and its officers.Venkatachapathy informed the court that presently, multiple FIRs have been registered by the Tamil Nadu Department of Vigilance and Anti-Corruption regarding TASMAC's excess collection of money above the actual MRP. Pointing to the petitions filed by the State and TASMAC challenging the ED search at TASMAC headquarters, the petitioner alleged that the state and TASMAC were attempting to hinder the investigation.It was submitted that the ugly manner in which the trial is being conducted by the investigation agencies undermines the credibility and independence of entire judicial system and legal system in the state of TN. He pointed out that since some of the accused involved are Ministers of the State, the witnesses would be hesitant to come forward. He added that the knee-jerk reaction of the prosecuting agency has destroyed the public confidence in administration of justice resulting in anarchy and breakdown of rule of law.Emphasising that a fair trial would not be possible, he urged the court to transfer the investigation to the CBI.Case Title: K Venkatachapathy v. Union of IndiaCase No: WP 18248 of 2025

'Not Trying To Protect TASMAC, Won't Close Predicate FIRs': State To Madras High Court On Apprehension Of PMLA Action Being Rendered Infructous

Upasana Sajeev

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