ED's Allegations Vague and Baseless, says TN Minister Senthil Balaji

Tamil Nadu Excise Minister V. Senthil Balaji on Friday dismissed the Enforcement Directorate’s (ED) allegations of a Rs 1,000 crore scam in the state-run Tamil Nadu State Marketing Corporation (TASMAC) as baseless and vague, asserting the government’s readiness to confront the claims legally. Speaking to reporters in Chennai, Balaji emphasized TASMAC’s transparent operations and challenged the ED’s failure to specify which FIR underpinned its probe.

“The ED’s statement is generalized, lacking clarity on the FIR basis,” Balaji said, hinting at political motives. Without naming Tamil Nadu BJP President K. Annamalai—who previously flagged a Rs 1,000 crore scam—Balaji suggested the ED echoed this narrative to tarnish Chief Minister M.K. Stalin’s image. He accused the Union government of weaponizing the ED to counter Stalin’s statewide campaigns against delimitation and the three-language policy, likening it to past misuse in a mining probe.

Defending TASMAC’s processes, Balaji insisted liquor procurement followed a transparent formula based on three-month and one-month sales averages, with no favoritism. “No new distilleries, breweries, or retail shops have been approved,” he added, refuting claims of policy shifts. He questioned the ED’s “hasty” March 13 statement—released a day before the 2025-26 state Budget—as a bid to overshadow welfare initiatives, vowing such tactics would fail.

Balaji also addressed ED claims of irregularities in staff transfers and tenders, calling transfers routine and tender processes—especially for bars—fully online and transparent. The ED had earlier alleged “multiple irregularities” in TASMAC, citing tender manipulation and Rs 1,000 crore in unaccounted cash transactions with distilleries, uncovered during March 6 raids. It pointed to evidence of kickbacks, a charge Balaji dismissed as unsubstantiated.