Chennai: The Enforcement Directorate (ED), Chennai, conducted extensive raids across Tamil Nadu on March 6 under the Prevention of Money Laundering Act (PMLA), 2002. The searches targeted individuals and entities linked to the Tamil Nadu State Marketing Corporation Limited (TASMAC) over alleged financial irregularities and corruption.
The investigation stemmed from multiple FIRs registered under the Prevention of Corruption Act, 1988, exposing a massive financial fraud in TASMAC operations. Key allegations include overcharging customers at liquor outlets, accepting bribes from distilleries in exchange for supply orders, and corruption in staff transfers and postings.
Major Findings from TASMAC Raids
During the raids, officials seized incriminating documents and data related to transport tenders, bar license tenders, and supply orders favoring select distilleries. Investigations revealed that TASMAC outlets were overcharging customers by ā¹10-ā¹30 per bottle, indicating a widespread illegal pricing scheme involving TASMAC officials.
Key irregularities uncovered include:
Manipulated Transport Tenders: Tenders were awarded despite having a single bidder, and in some cases, the Know Your Customer (KYC) details of applicants did not match the submitted Demand Drafts (DDs). TASMAC paid over ā¹100 crore annually to transporters.
Irregular Bar License Tenders: Licenses were issued without proper GST, PAN details, or KYC verification, raising concerns about transparency.
Direct Collusion with Distilleries: Communication records showed that distillery companies influenced TASMAC officials to secure favorable supply orders and other benefits.
Distilleries and Bottling Companies Under Investigation
The EDās probe extended to major distilleries and bottling units, exposing large-scale financial fraud. Distilleries under investigation include SNJ, Kals, Accord, SAIFL, and Shiva Distillery, while bottling companies like Devi Bottles, Crystal Bottles, and GLR Holding were found involved in fraudulent activities.
Investigators discovered that distilleries inflated expenses and created bogus purchase records to siphon off over ā¹1,000 crore in unaccounted cash. These illicit funds were allegedly used for paying bribes to TASMAC officials in exchange for supply orders. Bottling companies further falsified sales figures, routed excess payments, and later withdrew cash after deducting commissions.
A Well-Planned Financial Fraud Network
The ED’s findings indicate a well-orchestrated financial fraud involving concealed cash flows, inflated expenses, and systematic tax evasion. The role of TASMAC employees, distillery and bottle-making company associates, and other key individuals in these illicit operations is currently under investigation.
Further legal action and financial probes are expected as the ED continues its crackdown on corruption within Tamil Naduās liquor distribution network.