ED detects 'unaccounted' cash deals worth Rs 1,000 crore in TASMAC operations in Tamil Nadu

New Delhi: In yet another liquor scam, the Enforcement Directorate on Thursday said it has 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 the state-run Tamil Nadu State Marketing Company Limited (TASMAC), which has a monopoly over liquor sales.

The agency had last week conducted raids at the TASMAC headquarters in the city, and at the offices of its suppliers like SNJ, Kals, Accord, SAIFL, and Shiva Distillery along with bottling entities such as Devi Bottles, Crystal Bottles, and GLR Holding.

TASMAC, a state government undertaking which is the only agency that sells liquor in Tamil Nadu, is under the control of Electricity Minister V Senthil Balaji, who is out on bail in a money laundering case filed by the ED.

It said a well-orchestrated scheme of unaccounted cash generation and illicit payments has been uncovered with the probe 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in this fraudulent scheme by inflating sales figures, allowing distilleries to route excess payments, which were later withdrawn in cash and returned after deducting commissions,” the statement added.

The collusion between distilleries and bottling companies was done through manipulation of financial records, concealed cash flows, and systematic evasion, the agency said.

The findings confirm a network where unaccounted cash was deliberately generated through inflated and bogus expenses and subsequently utilized for purposes leading to huge profits. The agency added that the role of employees and associates related to TASMAC, distillery and bottle-making companies are being examined.

BJP chief K Annamalai said the TASMAC scam was the reason Chief Minister M K Stalin was spreading his delusional fears to divert people's attention and accused the DMK government of fleecing common people to fill their party’s coffers by rigging the system.

“The CM is duty-bound to answer the people who received these kickbacks. He should also ask himself if he has the moral right to continue as the CM of TN,” Annamalai added. He also said the BJP will organise a protest outside TASMAC HQ in Chennai on March 17.