Allegations have surfaced regarding a sharp rise in the number of “Manamagizh Mandrams” (recreation clubs) in Tamil Nadu, with claims that the licences are being used to facilitate private liquor sales and potentially divert revenue from the state exchequer.
The controversy follows information reportedly obtained under the Right to Information Act by Coimbatore-based senior advocate Loganathan. According to the data cited by him, the number of Manamagizh Mandrams in the state has increased from 62 prior to 2010 to over 800 at present, with a significant rise occurring after the DMK assumed office in 2021.
Loganathan alleged that nearly 600 outlets have been granted FL2 licences during the current regime and claimed these function effectively as private wine shops. He noted that when former Chief Minister J Jayalalithaa introduced the state-run retail model in 2003, the stated policy objective was to prevent private parties from profiting from liquor sales and to route the revenue directly into the government treasury through TASMAC.
He further alleged that the current licensing pattern undermines that objective. According to him, the FL2 licence mechanism is being misused and large sums, reportedly over ₹1 crore per licence, are being collected under various heads, which he suggested could be linked to political funding. No official confirmation of this allegation has been provided.
The advocate also contended that the state may be losing substantial revenue. He claimed that under an open competitive model, each outlet could generate around ₹60 lakh annually for the government through licence and renewal fees, whereas the FL2 structure reportedly brings in only about ₹10 lakh per year per unit. Based on this calculation, he alleged that potential revenue worth hundreds of crores may have been diverted to private hands or to the ruling party. He called this a major corruption issue and said an investigation could reveal even bigger problems.
Questions have also been raised about regulatory compliance. It is alleged that some Manamagizh Mandrams may not fully meet registration requirements under the Societies Registration Act, which mandates affidavits from at least five members. It is also reported that the Madurai Bench of the Madras High Court had earlier directed inspections, which, according to the complainant, have not been fully carried out. Government authorities have not publicly responded to these specific assertions.
Local residents in Coimbatore alleged that while TASMAC outlets operate under multiple restrictions, several recreation clubs function with fewer visible controls and extended operating patterns. Some residents further alleged that certain venues are offering promotional entry schemes, though these claims remain unverified. One local alleged, “These bars now run freely in the name of various styles, and particularly on Saturdays, college students are allegedly given free entry. Couples are offered free night access from 10 PM to 10 AM. Special arrangements are made where people can drink, dance, and engage in other activities. Such “11 to 11” bars have now become widespread, especially in Coimbatore, they are as common as tea shops.”
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