ED raids multiple premises in Tamil Nadu in TASMAC money laundering case

NEW DELHI: The Enforcement Directorate (ED) on Tuesday conducted searches at multiple locations across Tamil Nadu in connection with alleged corruption and money laundering linked to the Tamil Nadu State Marketing Corporation Limited (TASMAC) and its associated distillery and bottling firms.The raids, carried out under the Prevention of Money Laundering Act (PMLA), began early in the morning and covered at least 10 premises across the state. The action follows multiple FIRs filed under the Prevention of Corruption Act, 1988. These cases relate to various irregularities such as retail TASMAC shops charging customers more than the maximum retail price, distillery companies allegedly offering bribes to senior TASMAC officials in exchange for supply orders, and widespread corruption involving staff transfers and allotment of bar licenses. According to officials, senior officials received kickbacks both directly and through intermediaries to manipulate postings and contracts. In earlier raids conducted on March 6, 2025, the ED had recovered evidence suggesting irregularities in TASMAC’s transport tender process and bar license allotments. Investigators found that tenders were awarded despite mismatches in KYC documents and demand drafts, and in some cases, tenders were cleared even when there was only a single applicant. TASMAC is said to pay over Rs 100 crore annually to transporters, and the ED suspects significant manipulation in how these contracts were awarded. The investigation has now expanded to reveal a deeper financial fraud, with officials uncovering a cash trail of over Rs 1,000 crore. This unaccounted money was reportedly routed through distilleries and bottling companies by inflating expenses and fabricating purchases. The cash, once withdrawn after deducting commissions, was allegedly used to pay kickbacks in exchange for increased supply orders. ED officials also found evidence of direct communication between distilleries and senior TASMAC officials, pointing to a nexus aimed at influencing indent orders and favouring select suppliers. The ED is continuing to scrutinise the roles of TASMAC employees, distillery operators, and middlemen involved in the suspected corruption network. The raids and financial investigation are ongoing.