India, May 22 -- The Supreme Court on Thursday stayed the Enforcement Directorate's money laundering investigation against Tamil Nadu's state-run liquor retailer TASMAC, accusing the agency of "crossing all limits" and undermining the federal structure of governance. The sharp rebuke came from a bench led by Chief Justice B R Gavai and Justice Augustine George Masih while issuing notice to the ED on petitions filed by the Tamil Nadu government and TASMAC.

"Your ED is crossing all the limits," the bench told Additional Solicitor General S V Raju, who appeared for the central agency. It added that the ED's probe, launched under the Prevention of Money Laundering Act (PMLA) over alleged irregularities in granting wine shop licenses, "violat...