ED Search under PMLA Not Harassment: Madras HC Allows PMLA Proceedings Against TASMAC to Continue

The Madras High Court has ruled that a search conducted by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA) cannot be termed as "harassment." The court dismissed a petition filed by the Tamil Nadu State Marketing Corporation (TASMAC), a state-owned PSU, which had sought to stop the PMLA proceedings against it. The High Court affirmed that the ED has the statutory power and jurisdiction to conduct investigations and searches when it has reason to believe that money laundering has occurred. The court held that as long as the ED acts within the confines of the law, its actions cannot be impeded by terming them as harassment. This judgment is a significant endorsement of the ED's powers and allows the agency to continue its investigation into the alleged financial irregularities at the state-run liquor corporation.