The Directorate of Vigilance and Anti-Corruption (DVAC) has registered a corruption case against former Tamil Nadu Electricity Minister and DMK MLA V. Senthil Balaji, former Tamil Nadu State Marketing Corporation (TASMAC) Managing Director S. Visakan, Senthil Balaji’s close associate Rathesh Raj Shanmugavel, and four others over alleged large-scale irregularities in the functioning of TASMAC between 2021 and 2025, as reported in The Hindu.
As part of the investigation, the anti-corruption agency carried out simultaneous searches at 41 locations across Tamil Nadu on Wednesday, including Senthil Balaji’s ancestral residence at Rameswarapatti in Karur district.
According to the First Information Report (FIR), the DVAC has alleged that TASMAC officials, acting at the behest of Senthil Balaji and his associates, violated tender procedures while awarding bar licences in Coimbatore, Tiruppur, Erode, Namakkal, Karur and the Nilgiris by favouring select bidders.
The agency further alleged that 284 bars listed as closed continued to operate without licence renewals during 2022-23 in Coimbatore North, Coimbatore South and the Nilgiris, resulting in an estimated revenue loss of more than ₹32.81 crore to the State.
The investigation also covers alleged irregularities in transport contracts for TASMAC depots. According to the DVAC, earnest money deposit demand drafts submitted by one bidder were allegedly misused to award contracts to other transport operators in violation of established procedures.
The FIR further alleges that organised syndicates controlled bar licences through proxy operators and political influence. The agency claimed that certain distilleries and bottle suppliers generated funds through inflated invoices, which were allegedly used to pay kickbacks for securing liquor supply orders.
The DVAC has also alleged that TASMAC officials favoured select liquor manufacturers, permitted liquor to be sold above the maximum retail price (MRP), and manipulated transfers and postings of officials.
According to the agency, Rathesh Raj Shanmugavel functioned as an unofficial power broker within Tamil Nadu’s liquor administration and allegedly exercised considerable influence over official decisions. Investigators alleged that then TASMAC Managing Director S. Visakan acted on Rathesh’s directions under instructions from Senthil Balaji. The agency further claimed that Rathesh influenced decisions relating to approval of liquor brands, bar licence tenders and administrative transfers.
DVAC FIR names Rathesh Raj Shanmugavel as accused in the Senthil Balaji-Visakan FIR
-Rathesh operated as an unauthorized power broker, a central figure in Tamil Nadu’s liquor administration.
-He exerted direct and undue influence on official decision-making processes in TASMAC… https://t.co/wWEC8PDdSy— Siddharth Prabhakar (@Sidprabhakar7) July 29, 2026
The FIR also refers to the existence of a “Karur Gang”, alleging that bar operations in Karur district were controlled by an individual identified as Mulanoor Karthik and his associates. According to the DVAC, the group allegedly pressured senior regional managers and other TASMAC officials to allot bar licences to persons of their choice across the State. The agency further alleged that politicians in Karur, Coimbatore and other districts, claiming to be associated with the “Karur Gang”, collected party funds from bar operators.
Investigators began examining TASMAC’s revenue pattern after noticing that while liquor sales at retail outlets increased every year, revenue generated through bars had declined significantly. According to the agency, this discrepancy led to the detection of alleged cartelisation and other malpractices.
The DVAC has also alleged widespread overcharging at TASMAC retail outlets, claiming that customers were charged amounts ranging from ₹10 to ₹500 above the MRP for various liquor brands, with foreign liquor allegedly sold at mark-ups of up to ₹500.
According to the agency, there is prima facie material indicating a criminal conspiracy involving Senthil Balaji, Visakan, former senior regional managers, other TASMAC officials and private individuals. The FIR alleges that the accused abused their official positions to manipulate tenders, facilitate corruption and cause substantial financial loss to the State exchequer.
Searches were conducted at multiple locations in Karur, including Senthil Balaji’s ancestral home, the residence of his personal assistant at Moorthypalayam, the house of a DMK union secretary at Koyampalli and the office of the TASMAC District Manager. DVAC officials also questioned Senthil Balaji’s father, Velusamy, during the searches.
In Pudukottai district, the agency searched two liquor manufacturing units located at Kunnathur and Kallakottai villages. According to police sources, the searches began around 8 a.m. and continued for more than ten hours.
The FIR reportedly draws upon documents submitted before courts in connected proceedings, including material annexed to petitions and counter affidavits filed by the Enforcement Directorate (ED), while detailing the alleged irregularities involving the former minister, TASMAC officials, private companies and others.
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