Massive Corruption Scandal Rocks Tamil Nadu’s Liquor Trade
Chennai, March 15, 2025 – A bombshell investigation by the Enforcement Directorate (ED) has uncovered widespread corruption and financial irregularities within the Tamil Nadu State Marketing Corporation Limited (TASMAC), the state’s monopoly responsible for liquor distribution and sales. The probe, which culminated in raids conducted on March 6, has exposed unaccounted cash transactions worth ₹1,000 crore, manipulated tender processes, and evidence of systemic overcharging at TASMAC retail outlets across Tamil Nadu.
The ED’s findings paint a grim picture of corruption entrenched in the state’s liquor trade. Investigators allege that distillery companies, including prominent names like SNJ, Kals, Accord, SAIFL, and Shiva, collaborated with TASMAC officials to inflate expenses and falsify purchases, generating vast sums of unaccounted cash. This money, according to the ED, was used as kickbacks to secure inflated supply orders, ensuring a steady flow of illicit profits. Additionally, the investigation revealed irregularities in the tendering process for transport and bar licenses, with contracts awarded to unqualified applicants—some lacking essential documentation like GST or PAN numbers—in what appears to be a blatant display of favoritism.
At the consumer level, TASMAC outlets were found to be overcharging customers by ₹10-30 per bottle beyond the maximum retail price (MRP), a practice allegedly sanctioned by officials within the organization. The scale of the fraud has stunned observers, with the ED estimating that the total value of unaccounted transactions could exceed ₹1,000 crore, making this one of the largest financial scandals to hit Tamil Nadu in recent years.
The raids, which spanned TASMAC offices, distilleries, and bottling units across multiple districts, also uncovered direct communications between senior TASMAC officials and distillery representatives, further implicating the state-run monopoly in the scandal. The ED has seized incriminating documents and digital evidence, some of which reportedly point to the involvement of associates linked to Tamil Nadu Prohibition and Excise Minister Senthil Balaji. While no formal charges have been filed against the minister, his name has surfaced repeatedly in the investigation, intensifying political tensions in the state.
The revelations have sparked a firestorm of criticism from opposition parties, with the BJP and AIADMK demanding accountability and swift action. “This is a textbook case of corruption under the DMK’s watch,” said a senior BJP leader, calling for a thorough probe into the minister’s alleged role. The ruling DMK, however, has dismissed the accusations as politically motivated, with Minister Senthil Balaji asserting that TASMAC’s operations are transparent and vowing to challenge the ED’s claims legally.
As the ED digs deeper, the scandal threatens to shake public trust in Tamil Nadu’s liquor trade, which generates significant revenue for the state. With further raids and summons expected in the coming weeks, all eyes are on how this unfolding saga will impact the political and economic landscape of Tamil Nadu.
Stay tuned for updates as this story develops.
