Anbumani Ramadoss demands CBI probe into Tasmac 'scam'

The Federal exclusive

The request came after The Federal, in an exclusive story, reported about the Enforcement Directorate (ED) finding evidence about a large-scale black money operation involving private distilleries in the state. The ED started investigating the case following an FIR filed by the Directorate of Vigilance and Anti-Corruption (DVAC) against Tamil Nadu State Marketing Corp Ltd (Tasmac) officials.

Also read: Exclusive: ED spots black money link between Tamil Nadu distilleries and Tasmac

The ED has been conducting investigations at the CMDA Towers in Chennai, which houses Tasmac's main office, and at five private distilleries since March 7. Reports indicate that documents seized during these raids suggest the existence of corruption amounting to at least Rs 1,000 crore.

'Systematic theft'

Raising concern over the issue, Ramadoss lashed out at the ruling DMK, accusing it of shielding those responsible for what he termed a "systematic theft of public assets”.

“Where has the Rs 1,000 crore from the Tasmac corruption gone? The CBI must conduct an inquiry into the complaint filed with the enforcement agency,” he said, emphasising the need for a thorough and transparent investigation into the matter.

An ED representative told The Federal that only a small portion of the Rs 1,000 crore linked to corruption has reached Tasmac officials. Investigations are underway to determine the recipients of the remaining funds.

The agency's discovery has sparked speculation regarding the potential involvement of prominent political figures, although no definitive evidence has been disclosed to the public at this time.

Also read: Tamil Nadu: ED raids in fresh case against Senthil Balaji, others linked to TASMAC

Misconduct allegations

Ramadoss highlighted that the PMK has consistently brought to light issues of corruption within Tamil Nadu’s Prohibition and Excise Department, which is responsible for overseeing Tasmac. The department comes under the purview of V Senthil Balaji, state Minister of Electricity, Prohibition and Excise.

Ramadoss pointed out various forms of alleged misconduct, including the inflation of liquor bottle prices by Rs 10 to Rs 50 at retail locations, which is estimated to yield Rs 3,650 crore annually; bribes of Rs 50 per case from distilleries, contributing an additional Rs 500 crore each year; and a significant 50 per cent tax evasion on liquor sales, a claim supported by former state Finance Minister PTR Palanivel Rajan in a 2022 interview with a prominent daily.

Tax evasions, untaxed alcohol

It has been alleged that 50 per cent of the revenue from liquor sales in Tamil Nadu is neither collected through excise duties nor through sales taxes.

The situation reportedly results in an annual tax evasion amounting to Rs 50,000 crore. Over a span of four years, this figure could potentially reach Rs 2 lakh-crore, said Ramadoss, who accused the government of lack of action despite these revelations.

He further highlighted the existence of more than 20,000 illegal sandhu kadais (roadside shops) that sell untaxed alcohol, which significantly outnumber the state's 4,829 official Tasmac outlets. "Those who raise their voices against these shops are subjected to false legal actions. This is a protective measure of the Dravidian model government," he asserted.

Also read: The making of hooch, and its dangerous dance with chemistry and society

Scam money more than revenue

The ED’s investigation, which was prompted by a previous complaint from Tamil Nadu's anti-corruption unit, has heightened scrutiny against the DMK government. Ramadoss has expressed his discontent with the state police for their inaction regarding the initial case, asserting that only a CBI inquiry could reveal the truth.

"The profits derived from Tasmac irregularities for the ruling officials exceed the revenue generated for the government. This is why the government is resisting the investigation," he said.

Also read: 44% people prefer drinking in vehicles; illegal sale of liquor still rampant in Chennai

The Tasmac scandal has reignited discussions surrounding Tamil Nadu's liquor policy, a significant revenue source that generates over Rs 30,000 crore annually but is marred by allegations of mismanagement.

As the ED continues to examine the documents that were seized, the full scope of the scandal remains uncertain. Nevertheless, the PMK leader's call for a CBI investigation has drawn attention to Chief Minister MK Stalin's administration, raising critical concerns regarding accountability and transparency.