The recent three-day Enforcement Directorate (ED) raids at the state-exclusive liquor marketing outfit Tamil Nadu State Marketing Corporation Limited (TASMAC) and distilleries, breweries in Tamil Nadu have exposed unaccounted cash dealings amounting to over Rs. 1,000 crore. It is a blow to the DMK, which has been, in anticipation, trying to trigger the sentiments of the Tamil population through an anti-imposition campaign on Hindi and Sanskrit, by alleging poor treatment of Tamil Nadu through inadequate allocation of education funds and an imaginary delimitation exercise. However, they could not divert attention or garner support from allies and other political parties, thanks to the vigorous efforts of BJP leaders and Central ministers in Parliament, who exposed their double standards, deeds, and double-speak on the language issue and other matters.
Hours after the ED released a statement accusing TASMAC of indulging in irregularities hand in glove with liquor barons—mostly DMK men—the state government attempted another distraction by dropping the Rupee symbol, which had been adopted after several rounds of consultations with political parties during the UPA regime (of which DMK was a partner), and adding “Ru” (in Tamil—a short form of Rupee).
In a two-page statement, the ED stated: “Investigations reveal that distilleries systematically inflated expenses and fabricated bogus purchases, particularly through bottle-making companies, to siphon off over Rs. 1,000 crore in unaccounted cash.”
Tamil Nadu Chief Minister MK Stalin is spreading baseless rumors about the three-language policy, NEP, delimitation, and the removal of the ₹ symbol from the budget document to distract the public from the ongoing Enforcement Directorate (ED) raids on TASMAC, the Liquor… pic.twitter.com/rime4m8pQH
— Amit Malviya (@amitmalviya) March 14, 2025
Tamil Nadu BJP president Annamalai accused CM MK Stalin of spreading his delusional fears to divert people’s attention from the Enforcement Directorate raids on TASMAC, the Liquor Minister, and the liquor-supplying companies in Tamil Nadu. The ED has uncovered documents from distilleries linked to the generation of unaccounted cash of ₹1,000 crore, which was paid as kickbacks.
TN CM Thiru @mkstalin was spreading his delusional fears to divert people's attention from the Enforcement Directorate raid happening in TASMAC, the Liquor Minister, and the liquor-supplying companies in Tamil Nadu.
The ED has uncovered documents from the distilleries linked to… pic.twitter.com/wkZ0XQPPzE
— K.Annamalai (@annamalai_k) March 13, 2025
Last week, the ED conducted searches at the headquarters of TASMAC, as well as distillery companies such as SNJ, KALS, Accord, SAIFL, and Shiva Distillery, along with bottling companies like Devi Bottles, Crystal Bottles, and GLR, in Chennai, Karur, Pudukottai, and other places. This is the first time central agencies have conducted raids at the headquarters of a state government undertaking. The searches lasted for over three days.
#WATCH | Tamil Nadu: Raid by Enforcement Directorate (ED) underway at Tamil Nadu State Marketing Corporation Limited (TASMAC) office in Chennai
More details awaited pic.twitter.com/tmC4E2D086
— ANI (@ANI) March 6, 2025
The ED report stated: “These funds were then used for kickbacks to secure increased supply orders from TASMAC. Bottling companies played a critical role in this fraudulent scheme by inflating sales figures, allowing distilleries to route excess payments, which were later withdrawn in cash and returned after deducting commissions.”
The ED began its inquiry based on several FIRs lodged under the Prevention of Corruption Act by the Directorate of Vigilance and Anti-Corruption (DVAC), which raised concerns over irregularities in TASMAC operations. The FIRs identified three primary issues:
TASMAC outlets charging customers above the MRP price, distillery firms providing kickbacks to secure supply contracts, senior TASMAC officials soliciting bribes from retail establishments and personnel for advantageous transfers and postings.
The practice of not issuing bills at TASMAC outlets facilitated parallel liquor sales, where bottles had no excise labels and were sold at inflated prices.
The ED said: “Raids revealed damning evidence and documentation of tampered transport and bar licence tenders, favouritism towards specific distilleries, and overpricing of Rs. 10–30 per bottle at TASMAC outlets.”
The ED retrieved data showing that transport tenders, costing over Rs. 100 crore annually, were manipulated—successful bidders were pre-selected. Similarly, bar licence tenders were granted to applicants without GST or PAN numbers, highlighting the manipulation. The report states: “A large-scale financial fraud involving distillery companies and bottling entities exposed a well-orchestrated scheme of unaccounted cash generation and illicit payments. The findings confirm a network where unaccounted cash was deliberately generated through inflated and bogus expenses and subsequently utilised for corrupt activities, leading to huge profits.”
₹1000 crore alleged scam? ₹992 crore scam 2 days ago alleged in PDS. Now another 1000 crore alleged. No wonder we need to talk about language and rupee symbol….😀 Oops ரூ 1000 crore and ரூ992 crore. https://t.co/gtezpzEnZ8
— Sumanth Raman (@sumanthraman) March 13, 2025
The raids also revealed incriminating data related to transfer postings, transport tenders, bar licence tenders, indent orders favouring certain distillery companies, and excess charges of Rs. 10–30 per bottle by TASMAC outlets.
The ED’s probe showed that bottling companies were instrumental in the scheme by artificially inflating sales figures, which allowed distilleries to make excess payments that were later withdrawn in cash after deducting commissions. It stated that this collusion was based on fudged financial records, hidden fund flows, and systematic tax evasion, resulting in substantial gains for the parties involved.
Direct communications between distillery executives and senior TASMAC officials supported allegations of improper advantages. The ED said its findings indicated clear violations of the Prevention of Corruption Act and classified the irregularities as “proceeds of crime” under the Prevention of Money Laundering Act (PMLA). The agency is also probing TASMAC employees, associates of distilleries and bottling companies, and other significant individuals involved in the illicit network. The findings indicate a calculated generation of unaccounted cash through fraudulent expenses, which was then used for corrupt activities. This suggests the possibility of forthcoming arrests and further raids in the coming weeks.
Critics recalled that “then-Finance Minister PTR Palanivelrajan was removed from the ministry following the leak of an audio clip.” In May 2023, a 26-second audio clip surfaced, which Annamalai claimed featured Rajan’s voice, alleging that Stalin’s son Udhayanidhi and son-in-law V. Sabareesan illegally amassed Rs. 30,000 crore in a year. “Now, this amount could have crossed Rs. 1 lakh crore,” critics said.
TASMAC operates 4,830 outlets across Tamil Nadu, with a daily sales turnover of over Rs. 150 crore, which rises significantly during festivals. Outlet staff, in collusion with local politicians, allegedly run illegal bars and overcharge for water, cups, soda, snacks, and non-vegetarian food. Some shops even operate beyond restricted hours. During holidays, liquor is sold through half-opened doors or via intermediaries.
How the scam took place
Officials stated: “A high quantity of liquor bottles was procured from certain producers, showing favouritism. These were transported without bills or delivery challans directly to TASMAC outlets, resulting in a huge loss to the exchequer. Seventy-five percent of liquor was procured from distilleries owned by DMK or its benamis. We are pursuing all 35 cases registered by the DVAC.”
Puthiya Tamizhagam party founder Krishnaswamy, who had earlier submitted a petition to the Governor alleging a scam exceeding Rs. 1 lakh crore two years ago, said after the recent raids: “My stand has been vindicated.”
Meanwhile, BJP MLA Vanathi Srinivasan posted on X: “I have written to the Hon’ble Speaker of the Tamil Nadu Assembly, urging the state government to respond under Rule 55! ED’s investigation into TASMAC has uncovered unaccounted cash transactions worth ₹1,000 crore, exposing manipulated tenders and massive financial irregularities.”
Shocking revelations in Tamil Nadu!
ED's investigation into TASMAC has uncovered unaccounted cash transactions worth ₹1,000 crore, exposing manipulated tenders and massive financial irregularities.
Have written to the Hon'ble Speaker of the Tamil Nadu Assembly, urging the… pic.twitter.com/78pK1u70XX
— Vanathi Srinivasan (@VanathiBJP) March 14, 2025
Annamalai said: “The CM is duty-bound to answer who received these kickbacks. He should also ask himself if he has the moral right to continue as the CM of Tamil Nadu.” He also announced that the BJP would organise a protest outside the TASMAC headquarters in Chennai on 17th March
