After Delhi, Chhattisgarh, and Jharkhand, a new liquor scam has come to light in Tamil Nadu. The Enforcement Directorate (ED) has uncovered an alleged nexus involving DMK Minister V Senthil Balaji and senior DMK politicians. Balaji, handling the Electricity, Prohibition, and Excise portfolios, is under investigation as ED raids reveal collusion between officials, politicians, and distillery owners.
What is TASMAC Scam?
Distilleries allegedly inflated expenses and created fake purchases through bottle-making companies, diverting around Rs 1,000 crore into unaccounted funds and shell companies. These funds were reportedly used as kickbacks to secure inflated supply orders from the Tamil Nadu State Marketing Corporation (TASMAC).
Tamil Nadu’s Excise Minister, V Senthil Balaji, dismissed allegations by the Enforcement Directorate (ED) of a Rs 1,000 crore scam within the state-run liquor retailer, TASMAC. He stated the claims were baseless and generalized, asserting that the government was prepared to address the matter legally. Balaji questioned the legitimacy of ED’s claims, pointing out the absence of clarity regarding which FIRs formed the basis of the ED’s action.
Opposition’s allegations
AIADMK Chief Edappadi K Palaniswami expressed concerns that the scam might be larger than reported. He suggested that further investigations might reveal irregularities amounting to Rs 40,000 crore.
BJP leader Amit Malaviya and MLA Vanathi Srinivasan also raised allegations of widespread corruption. Malaviya criticized Chief Minister M.K. Stalin, accusing him of diverting attention from the ED raids by focusing on unrelated political issues. Srinivasan emphasised the need for the state government to respond to the scam allegations in the Assembly.
Tamil Nadu BJP chief K. Annamalai has strongly criticised the state government’s approach to the 2025 budget and recent controversies.
Addressing the media, Annamalai said, “The Tamil Nadu government deliberately stirred controversy yesterday by attempting to alter the rupee symbol, creating unnecessary commotion. Additionally, we have seen the Enforcement Directorate’s initial report regarding the raid on the state-run liquor corporation, TASMAC. The report suggests that the ruling party has received kickbacks exceeding Rs 1,000 crore.”
He further explained the BJP’s decision to walk out of the Assembly, stating, “The entire budget presentation is nothing but an eyewash. There is no substantial or productive initiative outlined. Moreover, the government has clearly not learned from its mistakes, as evident in the recent symbol controversy.”
Balaji’s defence of TASMAC deals
Balaji defended TASMAC’s operations, stating that the corporation functions with transparency. He emphasized that procurement processes are based on average sales and that no concessions or irregularities are permitted. Highlighting the transparency of the tender process, he explained that bars and transport tenders are processed online. He also noted that 500 retail shops were closed, and over 2,000 personnel were transferred in 2023 following internal consultations.
Balaji dismissed allegations of “kickbacks” for increased supply orders, labeling them as politically motivated. He questioned the “hasty” release of the ED’s statement, suggesting it was a tactic to overshadow welfare schemes announced in the state budget.
The minister accused the BJP of misusing central agencies like the ED to tarnish the image of Chief Minister MK Stalin. He claimed the timing of the ED’s press release was strategic, aimed at undermining state initiatives and welfare schemes. Balaji also pointed out that no new breweries or distilleries had been approved and that the procurement process adhered strictly to existing regulations.
Balaji reiterated the government’s readiness to take legal action if necessary and maintained that TASMAC’s operations were free from corruption.
Congress accuses ED of bias
Reacting on the alleged TASMAC scam, Congress MP Manickam Tagore stated, “It’s absurd that whatever Annamalai says, the ED seems to be documenting it as fact. This misuse of the ED and CBI should not be permitted. The courts must step in. ED offices have become compromised, appearing to take directives from the BJP headquarters. The ED is now functioning as an agent of Annamalai.”