Ready to legally face ED action on TASMAC, says TN Minister Senthil Balaji

Chennai: The Enforcement Directorate's Rs 1000 crore scam claim in state-run liquor retailer TASMAC has no basis and it was a generalised allegation and the government was prepared to face the matter legally, Tamil Nadu Minister V Senthil Balaji said on Friday.

Leader of Opposition and AIADMK chief Edappadi K Palaniswami said that though ED searches point to about Rs 1,000 crore scam, there are suspicions that culmination of related inquiry and action may lead to irregularities up to Rs 40,000 crore.

Balaji, TN Excise Minister asserted the state owned Tamil Nadu State Marketing Corporation (TASMAC) functioned with transparency. It has not been made clear by ED authorities as to which of the FIRs constituted the basis for initiating action, he told reporters here. "Legal action will be taken in the matter," he said.

Giving an "example," the minister asked. if "wrongs were committed in some 10 shops out of the 4,700 shops," whether it was wrong if TASMAC management took appropriate action and lodged FIRs. By picking such FIRs, he wondered how the ED could level allegations against even top officials for irregularities committed by some at the lowest rung.

Government-run TASMAC has complete monopoly over liquor trade in Tamil Nadu and it is the wholesaler, buying from manufacturers and retailer as well, running liquor shops across the state.

While the ED had alleged "kickbacks" to secure increased supply orders from TASMAC, Senthil Balaji said this was unacceptable.

"There is no basis for the claim that there was Rs 1,000 crore irregularities," he said dismissing the allegations as unfounded and as made with ulterior motives.

Without mentioning Tamil Nadu BJP President K Annamalai's name, Senthil Balaji said a leader had already claimed Rs 1,000 crore scam and later the ED statement repeated it and "there are 1,000 meanings."

Since Chief Minister M K Stalin has taken the threats of delimitation and 3-language policy everywhere in the state and made people understand it, the union government could not tolerate and it has misused the ED and the attempt is to create a bad name for the CM who enjoys the confidence of the people.

The Centre made a similar attempt misusing the ED in the matter of mining as well.

Underlining that there was no scope for irregularities as the tender process was transparent, he said the liquor procurement is on the basis of the last 3-month and last-month sales and its average. "No concession is shown to anyone in procurement and the process is transparent."

No new policy decision was taken and no permission was given to any new brewery/distillery or for any new retail shops. Questioning the "hasty" release of ED statement on March 13, 2025 evening alleging Rs 1,000 crore scam, he said it was just a day before the presentation of state Budget and it was a mischievous attempt to "hide" the welfare schemes and state initiatives aimed at benefitting the people and such efforts would not succeed.

The Minister ruled out irregularities, be it transfers or award of transport tenders.

Though the transfers were routine for reasons like family and health requirements and no wrongs or violations were committed, the ED has tried to give an appearance of wrongs. Similarly, as regards transport, tenders were awarded in a transparent manner and tenders for bars, which follows upset price norm, has already been made online.

Five hundred retail shops were closed and 2,157 personnel were provided transfers in 2023 following consultation sessions.

"TASMC is a commercial entity and though senior officials get representations from liquor companies on commercial matters, such requests are decided only by complying with the law and rules and regulations," the minister said.

The ED had earlier said it has found "multiple irregularities" in the operations of TASMAC, including "manipulation" in the tender processes and "unaccounted" cash transactions worth Rs 1,000 crore through distillery companies.

The federal agency had claimed it got "evidence" suggesting these corrupt practices after it raided the employees, corporate offices of distilleries and plants of TASMAC on March 6.

There were 'kickbacks' involved, it had claimed.