Chennai, July 29 — The Tamil Nadu government has initiated a major crackdown on alleged financial irregularities in the functioning of the Tamil Nadu State Marketing Corporation (TASMAC), with the Directorate of Vigilance and Anti-Corruption (DVAC) conducting simultaneous searches at 41 locations across the state as part of an ongoing corruption investigation.
According to official sources, the raids target warehouses, liquor manufacturing units and other establishments suspected of having links to alleged irregularities in TASMAC’s procurement and distribution system.
Searches are being carried out in Erode, Coimbatore, Peelamedu, Pollachi, Narasimhanaickenpalayam and Navakkarai, among other locations.
Officials said the DVAC has also conducted searches at the Sivas Distillery unit at Narasimhanaickenpalayam near Mettupalayam and at a liquor manufacturing facility in Mannargudi reportedly owned by a senior DMK leader.
The investigation comes amid allegations that Tamil Nadu’s liquor retail network had long been affected by unofficial cash collection mechanisms.
Sources claimed that Tamil Nadu currently has 4,048 registered TASMAC retail outlets and that nearly Rs 102 crore was allegedly diverted every month through informal collections made in the name of “party funds”. If sustained over the previous five years, the alleged diversion could amount to nearly Rs 3,600 crore. These figures have not been officially confirmed by the government and remain part of the ongoing investigation.
Senior government officials are understood to have briefed Chief Minister C. Joseph Vijay on the alleged irregularities, following which the government reportedly directed officials to introduce greater transparency in TASMAC’s revenue collection and accounting systems.
The government has also decided to review the existing mechanism for the return and handling of empty liquor bottles, which officials believe requires stricter oversight to eliminate possible revenue leakages.
As part of its broader policy measures, the government has already shut down 717 liquor outlets that were functioning near schools, colleges and other public gathering places, in line with its election commitments.
Sources said the Chief Minister has instructed officials to ensure that every rupee earned through TASMAC sales is properly accounted for and credited to the state treasury.
The administration has also reportedly ordered the dismantling of long-standing unofficial cash collection practices operating across TASMAC’s wholesale and retail network.
The outcome of the DVAC searches is expected to determine the next phase of the government’s anti-corruption action in the state-run liquor distribution system.