Tamil Nadu CM Vijay focusses on functioning of state-run liquor retailer, relocates 717 shops

Chennai: Within days of assuming office, Chief Minister C Joseph Vijay has turned his attention to the functioning of the state-run liquor retailer, Tamil Nadu State Marketing Corporation (TASMAC), plagued by massive corruption under previous governments, by ordering sweeping changes.

The changes include relocating 717 liquor shops located within 500 meters of educational institutions, places of worship, and bus stations. Additionally, a circular has been issued warning of action against those manning the outlets if they sell alcoholic beverages at prices higher than the Maximum Retail Price (MRP).

Another circular directs employees of TASMAC shops to strictly follow Rule 11A of the Tamil Nadu Liquor Retail Vending Rules, 2003, which prohibits selling liquor to persons below 21 years of age.

Officials told DH that a series of steps are being taken to overhaul TASMAC’s operations to bring transparency to its administration. “Three orders have been issued in the last four days, and these will leave a long-lasting impression. There will be more such orders to ensure transparency,” a source aware of the developments told DH.

Staff at TASMAC retail outlets are notorious for illegally demanding Rs 10 to Rs 30 above the MRP per bottle -- a scam that has generated crores in illicit profits. Vijay, during his campaign, had termed former Excise Minister V. Senthil Balaji as “Rs 10 Balaji,” referring to the “illegal amount” collected per purchase.

The Enforcement Directorate (ED) filed a case against irregularities in TASMAC based on FIRs filed between 2017 and 2025 under the DMK and AIADMK regimes, but the probe has been stayed by the Supreme Court.

TASMAC, which has a monopoly over liquor sales in Tamil Nadu, has over the years become a symbol of corruption and mismanagement. It has drawn criticism from people across all walks of life who objected to retail shops being opened in every village, near temples, educational institutions, and public places like bus stands.

People have been complaining about the proliferation of liquor outlets, but successive governments have seldom paid heed to them, viewing TASMAC primarily as a money-minting department. Annual sales in the financial year 2025-2026 reached over Rs 48,000 crore.

In a notice issued to staff, TASMAC instructed employees to verify age proof documents -- such as driving licenses, [ID Redacted], or other valid identity documents -- if there is any doubt regarding a customer’s age. A few days ago, Vijay ordered the closure of these 717 liquor shops within two weeks.

Jayaram Venkatesan, convenor of the NGO Arappor Iyakkam, told DH that such steps by the TVK government were a welcome move to put an end to the “socio-economic political disaster” known as TASMAC, but noted that the ultimate goal should be total prohibition.

“There have been instances of previous governments closing shops only to reopen them later, but we hope the TVK government will bring permanent change. Only when sales volume decreases will there be visible social changes. The government’s reliance on TASMAC revenue has to come down; it just needs political will,” Venkatesan said.

He added that there are many alternatives for the government to generate revenue if it chooses to forego the income from TASMAC.