ED searched the residence of senior IAS officer L Subramanian, the former MD of TASMAC, last week. He was known to be close to Balaji.
The Income Tax department had issued a summons to Ashok for the third time (Creative Commons)
Even as Tamil Nadu Minister V Senthil Balaji — arrested by the Enforcement Directorate (ED) on 14 June — is recuperating in a Chennai hospital, the central agency has conducted searches at the residence of an IAS officer and several other places linked to the minister and his brother over the past few days.
Balaji, previously the minister for electricity, excise, and prohibition in Chief Minister MK Stalin’s Cabinet, has been retained as a minister without portfolio after his arrest. He underwent a bypass surgery at the Kauvery Hospital in Chennai.
ED sources said their officials searched the residence of senior IAS officer L Subramanian last week. He was formerly the managing director of the Tamil Nadu State Marketing Corporation (TASMAC), the state-run agency that procures and retails alcoholic beverages.
Subramanian, appointed the managing director of TASMAC on 27 May, 2021, held the post till 16 May, 2023. He was later transferred to the Agriculture Department as its commissioner. S Visakan replaced him at TASMAC.
Subramanian, a promotee IAS officer, is said to be close to Balaji.
The so-called “Karur gang” — comprising Balaji’s henchmen and others close to to him — was also back in focus last week.
TASMAC sources said the “Karur gang”— so named as most members hailed from Karur district, where Balaji was born at Rameswarampatti village — actively collected “protection money” from liquor outlets that, in turn, charged the customers an extra ₹10 for each bottle purchased.
A TASMAC union leader, requesting anonymity, told South First that the unions had repeatedly apprised managing director Subramanian of the atrocities committed by the “Karur gang”.
“He would listen to our grievances patiently. But no action was initiated. The ‘Karur gang’ had influence over the managing director’s office,” he said.
ED sources, meanwhile, told South First that Subramanian was aware of the money collection and misappropriation of TASMAC funds by the “Karur gang” comprising the minister’s men.
“We got a few crucial pieces of information and documents supporting the collection of money. The IAS officer was amenable to the minister and his aides’ deeds,” the source said.
A week ago, the ED searched two private hospitals in Chennai that reportedly have business tie-ups with the friends of V Ashok Kumar, Balaji’s younger brother.
“We received a tip-off that Ashok was involved in a pharmaceutical business run by his friends. It was also learnt that Minister Balaji put pressure on both hospitals to procure medicines from a particular pharmaceutical company,” an ED source said.
“The hospitals procured medicines and we have found a few of their financial transactions with the pharmaceutical company. The transactions are being scrutinised,” the officer added.
Meanwhile, the Income-Tax (I-T) Department has issued a summons to Ashok Kumar for the third time, asking him to present himself before the department on 27 July.
The I-T Department has demanded an explanation based on the documents of financial transactions related to several concerns. The documents were seized during searches conducted last month. The ED, too, has summoned Ashok Kumar.
Sources said Ashok Kumar failed to turn up for questioning. “There was no explanation from Ashok for not appearing before the agencies. His whereabouts are unknown,” an ED official said.
Meanwhile, the ED has issued a lookout circular against Ashok Kumar to prevent him from fleeing the country.
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