Tamil Nadu CM Vijay Cracks Down on TASMAC Revenue Leaks, June 08

Tamil Nadu Chief Minister Joseph Vijay has ordered a sweeping crackdown on alleged corruption within TASMAC, the state-run liquor retail network. During his first Cabinet meeting, Vijay directed officials to halt unauthorized collections and ensure all liquor revenue reaches the state treasury. Officials claim Rs 102 crore per month was diverted through informal “party fund” systems, totaling Rs 1,600 crore over five years under the previous DMK administration.

Alleged Monthly Diversion Uncovered

Senior government officials briefed Vijay that approximately Rs 102 crore per month was being diverted through unauthorized collections embedded in TASMAC’s supply and retail chain. Over five years, this amounts to an estimated Rs 1,600 crore in lost state revenue. The unauthorized levies included Rs 90 per liquor case, Rs 40 per beer carton, and Rs 20 per wine carton collected at warehouses, transport points, and retail outlets.

Bottle Deposit Scheme Exploited

Officials also identified a separate scam involving the Rs 10 deposit system for liquor bottles. Before the deposit system was formally introduced last year, TASMAC outlets allegedly collected excess amounts from customers for four years. With approximately one crore bottles sold daily in 2021-22, the scheme generated at least Rs 10 crore extra per day, or Rs 300 crore monthly. This practice totaled Rs 3,600 crore annually, according to Excise Minister K Vignesh.

Immediate Actions and Reforms

Vijay instructed officials to dismantle all informal cash collection networks across TASMAC’s 4,048 registered outlets immediately. The government has already closed 717 liquor outlets within 500 meters of schools, temples, and bus stands. Minister Vignesh stated the administration is designing a “foolproof transparent system” to ensure all liquor revenue flows directly into the state treasury without diversion.

Previous Government Under Scrutiny

The alleged corruption occurred during the previous DMK administration’s tenure. In 2025, the Enforcement Directorate conducted raids at TASMAC’s main office and multiple locations, though the former government challenged these actions in court. The Madras High Court rejected petitions against the raids in April 2025, calling money laundering “a grave crime against the nation.” Vijay’s administration has now taken direct action to address the alleged leakages.

Final Thoughts

Vijay’s crackdown targets one of Tamil Nadu’s largest revenue sources, with annual liquor sales exceeding Rs 48,000 crore. Plugging these leakages could redirect Rs 1,600 crore back to the state treasury for welfare and infrastructure projects.

FAQs

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.