TASMAC Raids Unveil Unaccounted Cash and Manipulation Scandal

The Enforcement Directorate conducts sweeping raids related to a Tamil Nadu TASMAC-linked money laundering case, implicating officials and agents in a scandal involving unrecorded cash transactions over Rs 1,000 crore, tender manipulations, and kickbacks. The Madras High Court dismissed claims of political vendetta against the ED's actions.

In a significant development, the Enforcement Directorate (ED) conducted extensive raids on Friday, targeting the Tamil Nadu TASMAC-linked money laundering case. Officials disclosed that around 10 locations connected to TASMAC officials and agents in Chennai were searched under the Prevention of Money Laundering Act (PMLA).

Established in 1983, Tamil Nadu State Marketing Corporation Limited (TASMAC) is a state-controlled entity tasked with exclusive distribution rights for Indian Made Foreign Liquor and beer through its widespread retail network in the state. This is not the first instance of ED's scrutiny, as initial raids were carried out last March, highlighting significant financial discrepancies.

The ongoing investigation has brought to light disturbing allegations of irregularities including tender process manipulations, and unaccounted cash flows exceeding Rs 1,000 crore. Furthermore, the federal agency unearthed incriminating evidence of direct communications between distillery companies and TASMAC officials, aimed at garnering undue favors and inflated orders.

(With inputs from agencies.)