The Tamil Nadu government and TASMAC on Tuesday withdrew from the Supreme Court their pleas to transfer from the Madras High Court to another HC their petitions against the recent ED action on the state-run liquor retailer.
On April 4, the Tamil Nadu government had moved the apex court seeking transfer of the petition against the recent ED searches on TASMAC to another HC outside the state.
A two-judge bench of the apex court, led by Chief Justice Sanjiv Khanna and including Justice Sanjay Kumar, on Tuesday told senior advocate and former Attorney General of India, Mukul Rohatgi, appearing for the state government, that the issue should be decided by the Madras High Court.
The top court also clarified that the state government can approach it later, if there was any need.
Rohatgi agreed with the top court's suggestion and decided to withdrew the pleas on behalf of the TN government and TASMAC.
On March 20, the Madras High Court had directed the ED not to proceed further in connection with its raids at the TASMAC (Tamil Nadu State Marketing Corporation) headquarters in the city.
But as the case proceeded in the next hearing to March 25, the two-judge bench of the HC -- comprising Justice M S Ramesh and Justice N Senthilkumar -- recused from hearing the petitions filed by the state government and TASMAC. The HC bench also posted the matter for a final hearing on April 8. But before the hearing took place in the HC on April 8, the state government moved the apex court.
Both the aggrieved parties -- TN government and TASMAC -- had earlier moved the HC seeking appropriate orders and directions against the recent raids conducted by the ED on the state-run liquor retailer.
The ED, during its initial probe, claimed that it had uncovered serious financial irregularities involving distilleries and bottling units, unaccounted cash and illegal payments in this regard.
TASMAC, in its petition, requested the SC to pass directions to the ED not to harass its employees under the pretext of investigation. "The court should declare that the ED's action of investigating the offence within the territorial limits of the state was violative of federalism," it said.
