Tamil Nadu BJP president K Annamalai was arrested by Chennai police on Monday morning, just hours before he was set to lead a protest against alleged financial irregularities in the state-run liquor retailer, Tamil Nadu State Marketing Corporation (TASMAC).
Annamalai had planned to stage a demonstration outside the TASMAC headquarters in Chennai’s Egmore but was detained near his residence in Akkarai as he attempted to leave for the venue. Several senior BJP leaders, including former Telangana Governor Tamilisai Soundararajan, Mahila Morcha chief and Coimbatore South MLA Vanathi Srinivasan, and BJP MLA Saraswathi, were also arrested at different locations across the city.
The protest came in response to an ongoing probe by the Directorate of Enforcement (ED), which claims to have uncovered a massive corruption network within TASMAC. The investigation has allegedly linked state officials, liquor distilleries, and bottling companies to a financial fraud worth Rs 1,000 crore.
On Monday morning, as BJP workers assembled across Chennai, police forces were deployed in large numbers to prevent the demonstration. Soundararajan, a former BJP state chief, was intercepted at her residence in Saligramam, where authorities had cordoned off the area. Meanwhile, party members attempting to march from Rajarathinam Stadium to the TASMAC headquarters were detained in large numbers.
Following his arrest, Annamalai criticised the police action, accusing the ruling government of stifling democratic dissent. “You act boldly when we announce our protest in advance, but what if we launch an unannounced protest? What will you do then?” he challenged.
The ED had earlier conducted raids on March 6 at multiple locations across Tamil Nadu, seizing documents and electronic evidence. The investigation revealed alleged manipulation in tender processes, with transport contracts worth Rs 100 crore being awarded to ineligible bidders, including cases where tenders were granted with only one applicant.
Prominent liquor manufacturers — SNJ, Kals, Accord, SAIFL, and Shiva Distillery — are alleged to have funneled unaccounted cash through bottling companies like Devi Bottles and Crystal Bottles. These funds were reportedly used to bribe TASMAC officials in exchange for inflated supply orders.
The ED is also investigating claims of bribery in staff transfers and the routine overcharging of customers by Rs 10 to Rs 30 per bottle at TASMAC shops. Officials suspect the fraud was executed through inflated expenses and fake invoices, creating an illicit cash flow system. The evidence suggests distilleries systematically inflated costs, particularly through bogus bottle-making contracts, before diverting large sums for bribery and illegal payments.