What is the multi-crore TASMAC scam all about?
TASMAC, or the Tamil Nadu State Marketing Corporation, is a government-run entity responsible for the sale and distribution of alcohol across the state.
Since private liquor sales are banned in Tamil Nadu, TASMAC holds a complete monopoly over alcohol retail, making it a highly profitable and politically sensitive institution.
From managing wholesale procurement from distilleries to operating over 5,000 retail outlets across the state, TASMAC is the backbone of Tamil Nadu’s alcohol economy. Its reach touches every part of the supply chain — procurement, logistics, retail sales, and even bar licensing.
Why is TASMAC in the news?
The Enforcement Directorate (ED) is currently investigating a multi-crore liquor scam involving TASMAC. According to officials, deep-rooted corruption, supply manipulation, and misuse of government systems have led to illegal profits and politically backed operations that could amount to hundreds of crores of rupees.
How was the system allegedly exploited?
- Manipulated supply chains
The key allegation is that depot managers — those responsible for supplying liquor to TASMAC outlets — intentionally under-supplied popular liquor brands. Instead, they allegedly promoted alternative brands tied to certain private distilleries.
This practice distorted the real sales data, giving an artificial boost to the less-demanded brands, while well-known ones remained unavailable on shelves.
This wasn’t a technical glitch — it was a manipulation of the indenting system used by TASMAC, which relies on Oracle software to generate stock requests.
- Fake tenders and bogus purchases
ED officials believe that some distilleries created fake purchase entries, especially involving suppliers of bottles and raw materials. These sham transactions allegedly generated huge volumes of black money, later circulated as kickbacks.
- A power broker in the shadows
A man named Rathesh Raj Shanmugavel has emerged as a central figure in the case. Though not officially associated with TASMAC, he is accused of exerting influence over top-level decisions, including:
- Getting certain liquor brands approved
- Influencing bar licence allocations
- Meddling in administrative transfers
Investigators have retrieved WhatsApp chats that reportedly show direct communication between Rathesh and TASMAC’s Managing Director, raising serious concerns about how deep the rot goes.
Bar licence scams and benami ownership
One of the most eye-opening revelations has been a bar licence racket involving fraudulent demand drafts (DDs). In some districts, licences were issued using DDs submitted in the names of unrelated or fake individuals.
In one case, out of 50 licences issued, 47 were linked to third-party DDs. These bars, while officially under different names, are suspected to be run by benami operators — people acting on behalf of politically connected individuals.
Tender process exploited
A similar scam has been found in the transport tendering process. In one instance, an applicant submitted 16 DDs but was awarded just one contract. The remaining DDs were allegedly reused by TASMAC insiders to benefit favoured bidders, pointing to a deliberate rigging of the system.
Overcharging at retail outlets
In yet another layer of malpractice, TASMAC officials allegedly overcharged customers by Rs 10–30 per bottle at retail shops. This widespread issue, though internally acknowledged, has seen little regulatory action, allowing unaccounted cash flow to continue without checks.
Where is the money going?
Officials believe that the profits from these illegal operations are being invested in businesses across Tamil Nadu, suggesting a potential money laundering network tied to the scam.
(Agency inputs)