TASMAC scam probe pushes Tamil Nadu toward retail liquor privatisation

In six districts – Coimbatore, Nilgiris, Tirupur, Erode, Namakkal and Karur – tenders for 857 bars were opened on Dec. 31, 2021. District managers “violated and breached the tender rules by allowing particular participants and extended favour to them,” the FIR stated. The tenderers formed a syndicate, submitting earnest money deposits from the same bank with continuous serial numbers, which showed cartelisation.

Out of 857 bars, 284 were closed on paper, but they continued operating without license renewal. That failure to follow rules caused a revenue loss of Rs 17.27 crore in Coimbatore North, Rs 13.58 crore in Coimbatore South and Rs 1.95 crore in Nilgiris district during 2022-2023, the FIR said.

TASMAC pays about Rs 100 crore annually to transporters. The probe also found that suppliers of old bottles generated cash by submitting bogus or inflated invoices, receiving payment from distilleries, deducting their commission and returning the cash to the distilleries. The distilleries used those funds to provide kickbacks to officials who secured supply orders.

TASMAC shops collected excess amounts above the MRP – up to Rs 500 on foreign liquor and Rs 10 to Rs 100 on other brands – between 2021 and 2025 in an organised manner, the FIR said.

The scandal's scale prompted AIADMK general secretary Edappadi K Palaniswami to dub Balaji “Rs 10 minister” during campaign speeches. The moniker stuck, with TVK chief C Joseph Vijay also using the label. A TVK source said the government should pursue its anti-corruption mission and plug leakages. Private players could run the shops under strict government vigilance, the source added.