The Enforcement Directorate (ED) logo.
Credit: PTI File Photo
Chennai: Intensifying its probe into the Rs 1,000 crore liquor scam, the Enforcement Directorate (ED) on Friday raided at least 10 locations, including the residence of state-run liquor retailer Tamil Nadu State Marketing Corporation (TASMAC) Managing Director S Visakan, film producer Akash Baskaran, SNJ Distilleries, and government contractors.
The development comes a week after the Madras High Court told the ED to continue with its investigation into the scam under the Prevention of Money Laundering Act (PMLA), while dismissing a petition by TASMAC and the DMK dispensation seeking to declare the raids as “illegal.”
The raids which began at the residence of Visakan, an IAS officer, in Manapakkam continued till the time of writing even as the bureaucrat was taken by ED officers to their office in Nungambakkam. It is learnt that ED officials recovered printouts of WhatsApp chats near his residence that had details of TASMAC’s liquor procurement.
The raids are in continuation with the searches by ED at TASMAC headquarters in the first and second week of March, officials said, adding that the probe is now focused on the money generation avenues of the state-run liquor.
Besides Visakan, Akash Baskaran, producer at Dawn Pictures and linked to the DMK’s first family, was also searched by the ED.
After a search operation that lasted over two days at the TASMAC office and other places, the ED had on March 13 alleged a Rs 1,000 liquor scam in Tamil Nadu.
The ED had alleged that it unearthed documents to show that distilleries have siphoned off over Rs 1,000 crore in unaccounted cash, which they used as kickbacks to secure “increased supply orders” from TASMAC.
The ED had said it was a well-orchestrated scheme of unaccounted cash generation and illicit payments has been uncovered with proof revealing that distilleries systematically inflated expenses and fabricated bogus purchases, particularly through bottle-making companies, to siphon off over Rs. 1,000 crore in unaccounted cash.
“These funds were then used for kickbacks to secure increased supply orders from TASMAC. Bottling companies played a critical role in this fraudulent scheme by inflating sales figures, allowing distilleries to route excess payments, which were later withdrawn in cash and returned after deducting commissions,” the statement had added.