New Delhi/IBNS: The Supreme Court on Thursday rapped the Enforcement Director (ED) over the recent raids on state-run liquor shops in Tamil Nadu saying the federal probe agency is "crossing all limits"

A top court bench led by Chief Justice BR Gavai said as quoted by NDTV, "You may register cases against individuals... but corporations? Your ED is passing all limits! Issue notice, returnable after vacation."

The court has granted stay at further proceedings.

The ED in March claimed "multiple irregularities" in the Tamil Nadu State Marketing Corporation Limited (TASMAC), a government-owned entity that has a monopoly over liquor sales in Tamil Nadu,

It was established in 1983 and controls both wholesale and retail vending of alcoholic beverages in the state.

The probe agency says it has found "unaccounted cash" of Rs. 1,000.

The ED has conducted multiple raids in recent times. Ten premises were searched by the probe agency. 

The Tamil Nadu government had challenged the ED's raids and investigation, arguing that the agency was overstepping its authority and violating federal governance principles.

The probe was based on over 40 FIRs filed by the Tamil Nadu Vigilance Department.

In March 2025, several Bharatiya Janata Party (BJP) leaders including its then state president K Annamalai and former Tamil Nadu Governor Tamilisai Soundararajan were arrested during their protests against the alleged scam.

The BJP, which is the small opposition party in Tamil Nadu, alleged the DMK government was trying to suppress the protests.

The ED has accused former Tamil Nadu minister V Senthilbalaji of manipulating tender processes and funding into shell companies by colluding with distillery owners.

Senthilbalaji has denied all allegations and called the ED probe "politically motivated".