The Enforcement Directorate (ED) intensified its investigation into the alleged ₹1,000 crore Tamil Nadu State Marketing Corporation (TASMAC) money laundering scam, conducting fresh raids across Chennai and Tamil Nadu on May 16.
The searches targeted TASMAC Managing Director S. Visakan’s residence in Manapakkam, the offices of businessman Kesavan of K-Smart, and the home of Tamil film producer Aakash Baskaran, among 10 locations, as part of a probe into financial irregularities in the state-run liquor corporation.
Operating under the Prevention of Money Laundering Act (PMLA), 2002, the ED alleges that distilleries like SNJ, Kals, Accord, SAIFL, and Shiva Distillery, in collusion with bottling units such as Devi Bottles and Crystal Bottles, siphoned off over ₹1,000 crore through inflated expenses, fake purchases, and kickbacks to secure supply orders and rig tenders.
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The illicit funds were allegedly laundered through a network involving senior TASMAC officials and intermediaries. The agency is also probing assets acquired domestically and abroad by those implicated.
The raids follow earlier searches in March 2025 at TASMAC’s Egmore headquarters, distilleries in Chennai and Coimbatore, and residences linked to associates of Tamil Nadu Minister V. Senthil Balaji, who oversees TASMAC.
Incriminating documents and cash seized revealed irregularities in bar licenses, transport contracts, and overpricing at TASMAC outlets, with customers charged ₹10-30 above the maximum retail price.
The investigation has sparked political controversy. The ruling DMK called the raids “political vendetta” by the central government, with Law Minister S. Regupathy accusing the ED of “blackmail tactics.”
Opposition parties, including BJP and AIADMK, criticized the DMK, with AIADMK leader Edappadi K. Palaniswami alleging corruption could exceed ₹40,000 crore. TASMAC’s challenge to the March raids was dismissed by the Madras High Court, allowing the probe to proceed.
The ED has summoned top officials, including Visakan, for questioning and is examining financial records and QR-code billing systems.
As protests by BJP leaders like K. Annamalai were blocked by Chennai police, the scam has fueled a political firestorm. Further raids and summons are expected as the ED unravels the full scope of the alleged fraud in Tamil Nadu’s liquor trade.
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