The Enforcement Directorate (ED) has exposed significant financial irregularities amounting to Rs 1,000 crore in the Tamil Nadu State Marketing Corporation Limited (TASMAC), which holds a monopoly over liquor sales in the state.
The investigation has revealed widespread corruption, including manipulation in tender processes, unauthorised cash transactions, and direct involvement of key TASMAC officials and distillery companies.
Following extensive raids conducted on March 6 at TASMAC offices, distilleries, and bottling plants, the ED uncovered substantial evidence of financial mismanagement. The raids also targeted individuals linked to Tamil Nadu's Prohibition and Excise Minister, Senthil Balaji.
According to the ED, TASMAC officials were found to be manipulating tender allocations for transport and bar licenses. One of the most glaring discrepancies was the mismatch between applicant details and the required demand drafts (DDs), suggesting that some successful bidders did not even have valid documentation before the application deadline.
In some cases, tenders were awarded despite having only a single final applicant. TASMAC reportedly paid over Rs 100 crore annually to transporters.
The ED further found that bar licenses were granted to applicants without valid GST, PAN numbers, or KYC documentation. Additionally, direct communications between top TASMAC officials and distillery companies were discovered, revealing efforts to secure increased supply orders through fraudulent means.
The investigation pointed to large-scale financial fraud involving major distillery companies, including SNJ, Kals, Accord, SAIFL, and Shiva Distillery, as well as bottling firms like Devi Bottles, Crystal Bottles, and GLR Holding.
The ED alleged that these distilleries systematically inflated their expenses and falsified purchase records - particularly through bottle-making companies - to generate unaccounted cash. This cash was allegedly used as "kickbacks" to secure higher supply orders from TASMAC.
Bottling companies were also found to be inflating sales figures, allowing distilleries to transfer excess payments, which were later withdrawn in cash after deducting commissions. The agency claims that this collusion between distilleries and bottling firms enabled financial manipulation, concealed cash flows, and systematic tax evasion.
According to the ED, TASMAC outlets were overcharging Rs 10-30 per liquor bottle, with the involvement of TASMAC officials. These extra charges and illegal financial dealings contributed to massive profits for those involved in the corruption.
The ED’s findings indicate that a network of individuals and companies systematically manipulated financial records to generate black money, which was then used for illicit purposes.