ED Cracks Down on TASMAC: Unveiling Alleged Corruption and Money Laundering

The Enforcement Directorate (ED) is executing a series of raids at various locations in Tamil Nadu. These are connected to suspected offences involving the Tamil Nadu State Marketing Corporation Limited (TASMAC) and associated entities as per the Prevention of Money Laundering Act (PMLA), 2002. Officials report that the searches commenced early today, encompassing 10 premises.

This inquiry proceeds from multiple FIRs lodged under the Prevention of Corruption Act, 1988, addressing issues like TASMAC outlets overcharging customers, distilleries offering kickbacks for supply orders, and senior officials accepting bribes for staff transfers. Back in March 2025, ED's search operations unearthed data on suspect practices in transfer postings, transport tender manipulation, bar license tenders, and inflated charges at TASMAC outlets.

The investigation has uncovered discrepancies in TASMAC's transport tender awarding process, including mismatches in applicant KYC details and Demand Drafts, sometimes with tenders assigned to solo applicants. TASMAC reportedly spends over Rs. 100 crore annually on transport services. Additionally, bar license tenders were allegedly granted to applicants lacking GST/PAN numbers or adequate KYC documentation.

The probe also exposed direct dealings between distillery companies and senior TASMAC officials to secure increased indent orders and undue favor. This fraud is believed to involve distilleries and bottling firms artificially boosting expenses and creating fake purchases to divert over Rs. 1,000 crore into unaccounted cash used for kickbacks.

The scheme included falsified financial records, secretive cash movements, and systematic dodging of regulations. The ED continues to scrutinize the involvement of TASMAC employees, distillery staff, and bottling firm personnel involved in these illicit schemes.

(With inputs from agencies.)