Chennai: In a major crackdown, the Enforcement Directorate (ED) conducted searches at multiple locations across Tamil Nadu on March 6, targeting individuals and entities linked to the banned Popular Front of India (PFI) and alleged financial irregularities in Tamil Nadu State Marketing Corporation (TASMAC). The raids were part of a larger operation spanning 12 locations across ten states, reflecting an intensified probe into terror financing and corruption.
The ED’s anti-terror financing probe led to searches at two key locations in Chennai, including the state office of the Social Democratic Party of India (SDPI), which is accused of serving as a political front for PFI. The action follows the arrest of SDPI national president M.K. Faizy at Indira Gandhi International Airport in New Delhi on March 3, while he was allegedly attempting to flee the country.
The ED’s official statement accused SDPI of being a recipient and beneficiary of illicit funds raised by PFI for supporting unlawful and terror-related activities in India. According to investigators, SDPI has received Rs 4.07 crore in illegal funds as part of a wider criminal conspiracy.
Authorities claim that PFI members raised funds both in India and abroad, particularly from Gulf countries, using formal banking channels and illegal hawala transactions. These funds were allegedly funneled into activities aimed at destabilizing national security. The ED further stated that SDPI was entirely dependent on PFI for its operations, including election strategies, policymaking, and cadre mobilisation.
PFI’s Financial Trail and Ongoing Investigations
The ED’s probe into PFI’s financial network is based on two cases registered by the National Investigation Agency (NIA) and multiple First Information Reports (FIRs) filed by other enforcement agencies. So far, the agency has attached assets worth Rs 61.72 crore, filed nine charge sheets, and arrested 26 PFI office-bearers and members, including its chairman, general secretary, and members of its national and state executive councils.
Investigations have uncovered that PFI received over Rs 62 crore across 29 bank accounts between May 2009 and May 2022, with a significant portion of funds deposited in cash. Additionally, two overseas organizations— the ‘Indian Fraternity Front’ (linked to PFI) and the ‘Indian Social Forum’ (associated with SDPI)—are under scrutiny for their potential roles in funding illegal activities.
A seized document reportedly reveals that PFI endorses Jihad in all forms and has established several front organizations, including SDPI, to further its objectives. The findings have intensified calls for stronger financial oversight and counter-terror measures against such networks.
ED Raids on TASMAC HQ and Alleged Liquor Scam
Parallel to the PFI-related raids, the ED also conducted searches at TASMAC’s headquarters and other locations linked to alleged financial irregularities in Tamil Nadu’s state-run liquor trade. The raids covered 25 locations across Tamil Nadu, including Chennai, Thanjavur, Pudukkottai, and other cities.
BREAKING NEWS- ED raids 10 premises in Tamil Nadu that are reportedly linked to DMK Minister Senthil Balaji.
— News Arena India (@NewsArenaIndia) March 6, 2025
The probe is reportedly linked to a fresh money laundering case against Tamil Nadu Minister Senthil Balaji and his associates. TASMAC, which holds a state monopoly over liquor sales, has been under scrutiny over allegations of corruption, illicit financial transactions, and collusion with private liquor manufacturers.
ED teams conducted searches at multiple locations, including:
- TASMAC’s corporate office in Chennai
- The premises of TASMAC employees
- Corporate offices of distilleries and plants supplying liquor to TASMAC
- Key associates linked to Senthil Balaji
- DMK MP’s Distillery Under Investigation
As part of the raids, the office of Accord Distillery, owned by DMK MP S. Jagathratchakan, was also searched in Chennai’s T Nagar. Jagathratchakan’s brewery supplies liquor to the Tamil Nadu government, making it a significant entity in the state’s liquor trade.
#JUSTIN || டாஸ்மாக் தலைமை அலுவலகத்தில் ED ரெய்டு | #Chennai | #Tasmac | #EDRaid | #PolimerNews pic.twitter.com/Qczbfawc16
— Polimer News (@polimernews) March 6, 2025
Sources suggest that the investigation focuses on alleged financial mismanagement, illicit fund transfers, and favoritism in liquor contracts. However, no premises directly linked to Senthil Balaji were searched.
Senthil Balaji, who was reinstated as Tamil Nadu’s Minister for Electricity, Prohibition, and Excise after securing bail in September 2024, has been under ED’s radar in multiple corruption cases. He was previously arrested in a cash-for-jobs scam linked to his tenure in the state transport department.
In February 2025, the Supreme Court questioned Balaji on whether he intended to continue as a minister while facing trial in the money laundering case. The ED’s latest raids signal an intensification of the probe into financial misconduct in Tamil Nadu’s liquor sector.
The ED’s simultaneous action against PFI-linked entities and financial irregularities in TASMAC underscores the agency’s wider strategy to dismantle terror funding networks and curb corruption. With assets worth Rs 61.72 crore already attached and fresh investigations underway, authorities are tightening their grip on illegal financial activities across the country.
