The Enforcement Directorate (ED) is intensifying its investigation into an alleged ₹1,000 crore graft case involving the Tamil Nadu State Marketing Corporation (TASMAC), the state-run liquor retailer. On Friday, May 16, 2025, the ED conducted searches at multiple locations, including the residence of TASMAC Managing Director (MD) S. Visakan IAS, film producer Akash Baskaran, SNJ Distilleries, and several government contractors.
The ED's probe was spurred by a Madras High Court order on April 23, which criticized the Tamil Nadu government for attempting to obstruct the investigation into the alleged scam. The court dismissed petitions by TASMAC and the DMK government that sought to declare the ED raids as illegal.
The raids at Visakan's residence in Chennai led to the recovery of printouts of WhatsApp chats that contained details about TASMAC's liquor procurement, legal issues related to floating tenders and real estate conversations. ED sources indicate they have identified several avenues through which money is generated via TASMAC and are actively tracing the money trail.
The ED's investigation is based on multiple FIRs registered by the Directorate of Vigilance and Anti-Corruption (DVAC). These FIRs allege corruption involving TASMAC employees, kickbacks from liquor manufacturers, and illicit payments tied to staff postings and transfers. The ED has been investigating the alleged offenses under the Prevention of Money Laundering Act (PMLA), 2002.
In March 2025, the ED uncovered evidence of irregularities within TASMAC, including manipulation of bar tenders and licenses, liquor transportation, procurement processes, and discrepancies in empty bottle orders. The agency described it as a "well-orchestrated scheme" to generate unaccounted cash and facilitate illicit payments. The ED alleges that distilleries inflated expenses and fabricated purchases, particularly through bottle-making companies, to siphon off over ₹1,000 crore in unaccounted cash, which was then used as kickbacks to secure increased supply orders from TASMAC.
The ED alleges that illicit funds generated through TASMAC are being diverted and invested in various sectors, including the film industry. Film producer Akash Baskaran, who is linked to the DMK's first family, is under ED scrutiny.
S. Visakan and other senior TASMAC officials had been summoned by the ED on April 24, after the Madras High Court rejected TASMAC's challenge to the ED's raids. The ED's investigation revealed large-scale financial fraud involving distillery companies like SNJ, Kals, Accord, SAIFL, and Shiva Distillery, along with bottling entities such as Devi Bottles, Crystal Bottles, and GLR Holding. The agency also claims that some tender winners lacked proper GST/PAN details or Know Your Customer (KYC) documentation.
The MD of TASMAC and his wife were taken in for questioning, officials said. While his wife was allowed to leave by 5 pm, Visakan's interrogation continued.
