CHENNAI: The Enforcement Directorate (ED), in a statement on Thursday, alleged that its recent searches in Tasmac offices have revealed “a well-orchestrated scheme” through which distilleries, particularly through bottling units, generated unaccounted cash of over Rs 1,000 crore.
The money, the agency claimed, was then used for kickbacks to secure increased supply orders from the Tasmac — the sole organisation empowered to procure and sell liquor in the state.
Last week, the ED searched 25 locations, including Tasmac offices, distilleries and bottling units. The statement said, “Evidence reveals direct communication between distilleries and Tasmac officials, exposing efforts to secure increased indent orders and undue favours.”
The ED said the illicit money was generated by distilleries “systematically” inflating expenses and fabricating bogus purchases through bottle-making companies.
Tasmac probe based on FIRs under corruption law, says ED
The Enforcement Directorate (ED) has named distilleries SNJ, Kals, Accord, SAIFL, and Shiva Distillery, along with bottling units Devi Bottles, Crystal Bottles, and GLR Holding, in its probe into financial irregularities.
“This collusion between distilleries and bottling companies involved manipulation of financial records, concealed cash flows, and systematic evasion,” the ED stated, adding that unaccounted cash was used to generate huge profits. The agency is investigating the role of employees and associates linked to Tasmac, distilleries, and bottle-making companies in these illicit activities.
The ED’s probe is based on multiple FIRs under the Prevention of Corruption Act, highlighting three key irregularities: Tasmac shops charging above MRP, distilleries offering kickbacks to Tasmac officials for supply orders, and senior officials collecting bribes for staff transfers and postings.
During searches, the ED uncovered “incriminating data” related to transfer postings, transport tenders, bar license tenders, indent orders benefiting select distilleries, and excess charges of Rs 10-30 per bottle at Tasmac outlets.
A major finding was the manipulation of transport tenders, with Tasmac paying over Rs 100 crore annually to transporters. The ED found mismatches in KYC details and demand drafts submitted by applicants, suggesting procedural lapses or collusion between officials and companies. Some tenders were awarded despite having only a single applicant in the final bid.
The ED also found evidence of irregularities in bar licence tenders, where tenders were granted to applicants lacking GST/PAN numbers or proper KYC documentation.
The agency continues to investigate financial manipulations and corruption linked to Tasmac operations, with a focus on unearthing the extent of collusion and identifying those responsible for the large-scale irregularities.