The Enforcement Directorate (ED) has claimed to have unearthed a large-scale financial fraud amounting to ₹1,000 crore during its recent searches on the Tamil Nadu State Marketing Corporation Limited (TASMAC). TNM had previously reported in its latest political newsletter, Powertrip, on how these meticulously planned raids had rattled the Tamil Nadu government.
The ED initiated a money laundering probe under the Prevention of Money Laundering Act (PMLA), 2002, based on multiple FIRs registered by the Directorate of Vigilance and Anti-Corruption (DVAC). These FIRs alleged corruption involving TASMAC employees, kickbacks received by officials from liquor manufacturers, and illicit payments linked to staff postings and transfers.
In a press release, the ED stated that its investigation uncovered incriminating evidence related to TASMAC staff transfers and postings, irregularities in transport tenders, and manipulations in bar-related tenders.
The agency highlighted irregularities in TASMAC’s transport tender allocations, stating, "A glaring issue is the mismatch between the KYC details of the applicant and the Demand Draft (DD), suggesting that the final successful bidder did not even obtain the requisite DD before the application deadline."
Additionally, the ED claimed to have found evidence of manipulation in the allocation of bar license tenders. "Evidence reveals direct communication between distillery companies and senior TASMAC officials, exposing efforts to secure increased indent orders and undue favors," the statement read.
The investigation has also brought several private distilleries and bottling units under the ED’s scanner. The agency alleged that distilleries such as SNJ, Kals, Accord, SAIFL, and Shiva Distillery—along with bottling units like Devi Bottles, Crystal Bottles, and GLR—were involved in a “well-orchestrated scheme” of generating unaccounted cash and making illicit payments.
According to the ED, these distilleries systematically inflated expenses and fabricated bogus purchases, particularly through bottle-making companies, to siphon off over ₹1,000 crore in unaccounted cash. "These funds were then used for kickbacks to secure increased supply orders from TASMAC," the agency stated.
During the search operations at TASMAC outlets and related offices, officials recovered a significant volume of documents, which are currently being examined. ED sources have indicated that, based on the findings, summons will soon be issued to officials involved in TASMAC operations.
The agency also conducted raids at the residences of former officers linked to TASMAC’s decision-making processes. Further action is expected as the investigation progresses.