The Tamil Nadu State Marketing Corporation (TASMAC) has filed a petition in the Madras High Court challenging the recent Enforcement Directorate (ED) raids conducted at its offices and associated entities. The state-run liquor distributor has accused the ED of exceeding its jurisdiction and has sought judicial intervention to prevent alleged harassment of its employees.
The case is scheduled to be heard on 20 March 2025 by a bench comprising Justices MS Ramesh and N Senthilkumar. In its plea, TASMAC has requested the court to declare the ED’s investigation within Tamil Nadu as a violation of federalism, arguing that such probes should be initiated only upon a request from state agencies.
On 6 March 2025, the ED raided TASMAC headquarters in Chennai, along with multiple distilleries and bottling units across Tamil Nadu, citing financial irregularities exceeding ₹1,000 crore. The central agency has alleged widespread corruption, including tender manipulations, unaccounted cash transactions, and systematic overpricing at TASMAC retail outlets.
According to the ED, the raids uncovered significant evidence indicating collusion between distilleries and TASMAC officials. The agency claims that distilleries and bottling companies inflated expenses and recorded fictitious purchases to generate unaccounted funds, which were allegedly used to bribe TASMAC officials for favorable supply contracts.
Additionally, the ED has pointed to irregularities in allocating transport and bar license tenders, citing instances where contracts were awarded to applicants lacking essential documentation, such as GST or PAN numbers. Concerns have also been raised about cases where tenders were granted despite receiving only a single bid, raising questions over transparency.
Further allegations include systematic overpricing at TASMAC retail outlets, where liquor bottles were reportedly sold at ₹10-30 above the maximum retail price (MRP), allegedly leading to significant revenue misappropriation.
The raids have sparked political controversy, with the ruling Dravida Munnetra Kazhagam (DMK) party condemning the ED’s actions as politically motivated. The DMK has accused the Central government of misusing investigative agencies to target the state administration. In contrast, the Bharatiya Janata Party (BJP) has defended the probe, stating that the allegations of corruption warrant a thorough investigation to ensure accountability.
(With inputs from Bar and Bench)
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