Tasmac 'scandal': TN minister Senthil Balaji denies allegations, says will fight legally

The Tamil Nadu government on Friday (March 14) categorically denied allegations by the Enforcement Directorate (ED) of a purported Rs. 1,000 crore corruption scandal involving the Tamil Nadu State Marketing Corp (Tasmac).

The allegations suggest undue transactions and malpractices that ostensibly led to significant financial discrepancies amounting to Rs. 1,000 crore.

Minister denies charges

Minister Senthil Balaji, overseeing the electricity, prohibition and excise department, asserted the state's adherence to transparency and legal compliance in Tasmac's tendering processes. The minister, who is already facing ED probe in a money-laundering case, said the state would fight legally.

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“The tender process upholds transparency, and no misconduct exists,” he told the media.

He further raised questions about the basis of these allegations, pointing out the systematic online procedure for all tenders by Tasmac for the last four years, discrediting the claims of malfeasance.

Balaji explains procedures

Balaji said: "Among our 2,500 employees, some 10 to 20 individuals are engaged in minor criminal activities. We have submitted complaints, and in some instances, Directorate of Vigilance and Anti-Corruption (DVAC) has taken action. Now, the ED is linking these cases to the managing director of Tasmac and others, which is unfair."

Further defending the state’s mechanisms, Balaji said that claims about the scam preceded the ED's accusations. He said the accusations were unfounded and lacked tangible evidence.

Legal action threatened

The minister said the state government would pursue legal routes to counter the allegations, emphasizing the ongoing legal scrutinise against the supposed transportation contract anomalies flagged by the central agency.

In light of frequent transfers among Tasmac staff due to various reasons, the minister elaborated on the transparent and need-based reallocation of employees, dismissing any misrepresentation of these standard administrative procedures as irregular or corrupt practices.

Transparency in TN

Addressing transparency in the procurement and bidding process, a press release carried the publicly accessible tendering system TASMAC employed, underscoring online submission and multidimensional oversight mechanisms.

TN system versus ED

The minister's statement rejects the allegations, offering a chronological narrative of adherence to legal and procedural norms, from tender allocations to staff transfers within TASMAC.