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Tamil Nadu: Trouble for DMK as ED conducts fresh searches in TASMAC money laundering case

ED has registered a money laundering case against the Tamil Nadu government-owned retail liquor sales company TASMAC over alleged irregularities to the tune of Rs 1000 crore

Logo of Tamil Nadu government-owned TASMAC

The Enforcement Directorate is conducting searches at 10 places across Tamil Nadu in connection with irregularities in TASMAC, a state-owned retail liquor sales company. The central agency had earlier alleged irregularities to the tune of Rs 1,000 crore in the corporation.

Sleuths from the ED began raids during the early hours of Friday at premises related to officials of Tamil Nadu State Marketing Corporation Limited (TASMAC) and its agents. The central agency has registered a money laundering case against TASMAC, alleging irregularities in awarding tenders and fund misappropriation by distilleries and bottling firms related to TASMAC.

The case meant fresh trouble for former Tamil Nadu excise minister V. Senthil Balaji, who is already undergoing trial in another ED case. Balaji is facing charges under the Prevention of Money Laundering Act in connection cash-for-job scam during the erstwhile Jayalalithaa regime. Balaji was the transport minister then. 

The central agency raided premises related to TASMAC in March for four days and reportedly seized various "incriminating documents". The ED case stems from the prevention of corruption cases earlier registered by the Tamil Nadu vigilance and anti-corruption wing. 

 ED charged it discovered a "large-scale scam" at TASMAC. ED said it recovered incriminating data related to transfer and postings in the state-owned TASMAC, transport tender, bar licence tender, indent orders favouring few distillery companies and excessive charging at TASMAC outlets. ED charged applicants without any GST/PAN numbers and without any proper KYC documentation were allotted the final tenders.

Though the Tamil Nadu government and TASMAC approached the Madras High Court against the probe, the Court dismissed the plea and allowed the central agency to continue the probe.