The agency alleged large-scale financial and administrative irregularities within the state-run liquor retailer, the Tamil Nadu State Marketing Corporation Limited, following raids across multiple districts on 6 March.
Published Mar 14, 2025 | 9:21 PM ⚊ Updated Mar 14, 2025 | 9:21 PM
Synopsis: The Enforcement Directorate has alleged a ₹1,000 crore corruption scam involving the Tamil Nadu State Marketing Corporation Limited, following raids across multiple districts earlier this month.
The Enforcement Directorate (ED) said it has unearthed an alleged ₹1,000 crore corruption scam involving the state-run liquor retailer the Tamil Nadu State Marketing Corporation Limited (TASMAC) following raids across multiple districts in the state on 6 March.
The raids were conducted under the Prevention of Money Laundering Act (PMLA), 2002, and resulted in the seizure of incriminating documents linked to bribery, tender manipulation, and illicit financial transactions, the agency said.
In response to the allegations, Electricity, Prohibition, and Excise Minister V Senthil Balaji said the ED’s charges had no basis and that was a generalised allegation. He further stated that “legal action will be taken in the matter,” the New Indian Express reported.
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
The investigation is ongoing, with officials examining the roles of TASMAC personnel, distillery owners, and bottling company executives.
The agency added that further legal proceedings would follow as more evidence emerges.
The ED alleged that large-scale financial and administrative irregularities were found within TASMAC operations, including:
The agency also said its investigation pointed to irregularities in the awarding of tenders:
Furthermore, the ED alleged that distilleries – including SNJ, Kals, Accord, SAIFL, and Shiva Distillery – engaged in financial misconduct by inflating expenses and fabricating purchases to generate over ₹1,000 crore in unaccounted cash.
Bottling firms such as Devi Bottles, Crystal Bottles, and GLR Holding allegedly manipulated sales figures to facilitate excess payments, which were later withdrawn as cash and returned after deducting commissions.
The agency claims this system was used to conceal illicit profits through fraudulent financial records and hidden cash flows.
The alleged scam triggered political protests during the state budget session on Friday, 14 March.
MLAs from the Bharatiya Janata Party (BJP) staged a walkout, accusing the ruling Dravida Munnetra Kazhagam (DMK) government of large-scale corruption.
BJP Tamil Nadu president K Annamalai criticised the state government and announced a gherao protest at the TASMAC headquarters in Chennai on 17 March, demanding action against those involved.
The @dir_ed statement on the Tamil Nadu’s liquor scam clearly exposes the reasons for @arivalayam & Chief Minister @mkstalin ‘s language politics . Thousands of Crores have been looted . The Chief Minister should own responsibility for this. The concerned Minister…
— Narayanan Thirupathy (@narayanantbjp) March 13, 2025
Similarly, BJP leader Tirupathi Narayanan claimed the scam exposes the real motive behind the DMK’s focus on language politics, accusing the party of looting public funds.
He demanded that Chief Minister MK Stalin take responsibility and called for the immediate resignation of Minister Senthil Balaji.
(Edited by Dese Gowda)
