The TASMAC Liquor Scam: : TASMAC's ₹1,000 Crore Liquor Scandal: Exposing Tamil Nadu's Booze-Fueled Corruption

The Tamil Nadu State Marketing Corporation (TASMAC) liquor scam has emerged as a major controversy in 2025, shaking Tamil Nadu’s political and economic landscape. Allegations of a ₹1,000 crore fraud involving kickbacks, tender manipulation, and overpricing have put the state’s government-run liquor monopoly under scrutiny, with the Enforcement Directorate (ED) leading a high-profile investigation. As a reporter with a pulse on Mollywood’s drama, I’m diving into this real-life saga of power, money, and politics, drawing from recent reports and social media sentiment to explain what the TASMAC scam is, who’s implicated, and why it matters.

What is TASMAC?
TASMAC, established in 1983 under then-Chief Minister M.G. Ramachandran, is Tamil Nadu’s sole authority for liquor sales, operating 4,829 retail outlets and generating significant revenue for the state. It regulates liquor procurement, distribution, and sales, making it a financial powerhouse—or, as critics call it, a “cash cow” for ruling parties. For decades, TASMAC has been both a revenue driver and a political tool, allegedly funding electoral campaigns and party expenses, a dynamic that sets the stage for the current scandal.

The Scam: Allegations of a ₹1,000 Crore Fraud
In March 2025, the ED launched a sweeping investigation into TASMAC, uncovering what it calls a “sprawling corruption network” worth over ₹1,000 crore. The probe, sparked by multiple FIRs under the Prevention of Corruption Act, 1988, and the Prevention of Money Laundering Act (PMLA), alleges systemic irregularities in TASMAC’s operations. Here’s a breakdown of the key accusations:Tender Manipulation: The ED claims TASMAC awarded contracts to liquor distilleries and bottling companies through rigged tenders. For instance, tenders were allegedly given to applicants lacking essential documents like GST or PAN numbers, with conditions manipulated to favor specific firms. One ED finding noted a bottle supplier charging ₹15 for a ₹10 bottle via middlemen, inflating costs.
Kickbacks and Bribes: Major distilleries—SNJ, Kals, Accord, SAIFL, and Shiva Distillery—are accused of funneling unaccounted cash through bottling firms like Devi Bottles and Crystal Bottles to bribe TASMAC officials. These kickbacks secured inflated supply orders, with evidence of direct communication between senior TASMAC officials and liquor companies.

Overpricing at Retail: TASMAC shops reportedly charged ₹10–30 more per bottle than the printed MRP, with the excess allegedly pocketed by officials or diverted to political coffers. Social media posts highlight public frustration, with one user stating, “TASMAC shops charge ₹240 for a ₹200 bottle and refuse to give bills. The extra goes to DMK.”
Unaccounted Transactions: The ED uncovered discrepancies in transportation tenders, with consignments meant for retail outlets diverted elsewhere. Procurement volumes were underreported, and there was no proper documentation—no Goods Received Notes (GRN), sale receipts, or day books—for many TASMAC outlets. Some shops operated under a single GST number, obscuring financial trails.
Bribery in Operations: Bribes were allegedly paid for employee transfers, postings, and bar licenses, with incriminating data found during ED raids on March 6–8, 2025, at TASMAC’s Chennai headquarters, distilleries, and bottling units across Tamil Nadu.
The ED’s raids, covering 20 locations, seized documents and digital evidence, pointing to a network involving politicians, bureaucrats, and businessmen. The agency compares the scam to liquor frauds in Delhi and Chhattisgarh, but claims TASMAC’s is larger in scale.

Key Figures and Political Fallout
The scandal has drawn sharp political battle lines, with the ruling Dravida Munnetra Kazhagam (DMK) government, led by Chief Minister M.K. Stalin, facing accusations from the Bharatiya Janata Party (BJP) and All India Anna Dravida Munnetra Kazhagam (AIADMK).V. Senthil Balaji: Tamil Nadu’s Excise Minister is a central figure, labeled the “kingpin” by BJP state chief K. Annamalai. Balaji, previously arrested in 2023 for a separate money-laundering case, denies the allegations, insisting TASMAC operates transparently and that bar tender processes have been online for four years, leaving “no room for malpractices.” Annamalai, detained during a March 17 protest, claimed, “The TASMAC scam is bigger than Delhi’s liquor scam,” accusing Stalin of reinstating Balaji post-jail to oversee liquor operations.
M.K. Stalin: The BJP alleges Stalin is “accused number 1,” using distractions like language policy debates to deflect from the scam. Stalin’s government counters that the ED’s probe is politically motivated, with Balaji claiming the ₹1,000 crore figure is fabricated, echoing Annamalai’s earlier rhetoric.
Opposition Leaders: AIADMK’s Edappadi K. Palaniswami (EPS) slammed the DMK, questioning their legal challenge to the ED and alleging corruption exceeding ₹40,000 crore. Actor-politician Vijay, heading Tamilaga Vettri Kazhagam (TVK), called for an independent probe, labeling the BJP’s protests “drama” and accusing both parties of collusion.

Legal Battles and Court Interventions
The Tamil Nadu government and TASMAC challenged the ED’s raids in court, alleging overreach and improper conduct, such as detaining staff for over 60 hours without summons and seizing phones. On March 20, 2025, the Madras High Court, led by Justices M.S. Ramesh and N. Senthilkumar, temporarily halted the ED’s probe, criticizing the agency for not disclosing raid reasons and conducting searches at odd hours. TASMAC filed petitions to declare the March 6–8 raids illegal and block further action under the PMLA without state consent.

However, the Supreme Court on April 8 refused to transfer these petitions to another high court, with Chief Justice Sanjiv Khanna stating, “Let it be decided there.” Tamil Nadu and TASMAC withdrew their transfer pleas, and the Madras High Court resumed hearings on April 9, with the ED defending its actions. The court’s recusal in March and ongoing scrutiny reflect the case’s complexity and political sensitivity.
Public and Political Reactions
The scam has fueled public anger, with social media posts decrying TASMAC’s overpricing and lack of transparency. One user simplified the issue: “TASMAC shops charge ₹240 for a ₹200 bottle. The extra goes to DMK.” Protests erupted, notably on March 17, when BJP leaders, including Annamalai and Tamilisai Soundararajan, were detained in Chennai. The BJP’s planned demonstration at TASMAC’s Egmore headquarters was quashed, with police accused of suppressing dissent. TVK’s N. Anand called the protests performative, demanding a thorough investigation.
The DMK, meanwhile, accuses the BJP of weaponizing central agencies like the ED, with Congress MP Manickam Tagore claiming, “ED offices seem to take directives from BJP headquarters.” The opposition’s walkout during the state’s 2025–26 budget session underscored the scam’s political weight, overshadowing welfare announcements like free bus travel for women.

Why It Matters
The TASMAC scam isn’t just about money—it’s a window into Tamil Nadu’s opaque liquor industry, where state control fosters corruption. With no Goods and Services Tax (GST) on liquor and full state authority, TASMAC’s monopoly creates fertile ground for scams, echoing cases in Delhi and Chhattisgarh. For Tamil Nadu’s citizens, the scam means inflated prices and eroded trust, while politically, it’s a weapon for the BJP to challenge the DMK’s dominance ahead of elections.
As a reporter, I see the human side: shop workers caught in raids, families paying extra for liquor, and a state grappling with systemic flaws. The ED’s probe, while divisive, exposes a truth Mollywood’s dramas often mirror—power protects itself, but cracks eventually show. Whether Balaji, Stalin, or others face accountability depends on the courts and public pressure, but one thing’s clear: Tamil Nadu’s liquor trade is giving the state a bitter hangover.