Liquor Scam Fallout: Supreme Court to Hear Tamil Nadu Govt’s Plea on TASMAC ED Probe

Tamil Nadu Govt’s Plea on TASMAC ED Probe

In a dramatic turn in the ongoing TASMAC controversy, the Tamil Nadu government has approached the Supreme Court challenging the Enforcement Directorate's (ED) recent actions, including high-profile raids and investigations into alleged corruption involving the state-run Tamil Nadu State Marketing Corporation (TASMAC).

ED Raids Uncover Alleged ₹1,000 Crore Irregularities

Between March 6 and 9, 2025, the ED conducted surprise raids at TASMAC’s headquarters in Chennai and various liquor factories. The agency claims to have unearthed evidence of large-scale irregularities worth around ₹1,000 crore. These alleged financial discrepancies reportedly stem from fraudulent transactions involving breweries and bottling units, with the money believed to have been used as kickbacks to secure lucrative contracts.

Tamil Nadu Challenges Legality of ED Action

The Tamil Nadu government, along with TASMAC, filed a petition in the Madras High Court, contesting the legitimacy of the ED’s raids. State Minister V. Senthilbalaji questioned the basis for the probe, pointing out the absence of a First Information Report (FIR) as a foundation for the enforcement action. TASMAC officials also claimed that their staff were harassed during the raids, especially women employees, raising concerns over procedure and rights violations.

Madras High Court Rules in Favor of ED

The Madras High Court, however, upheld the ED’s actions, describing the allegations as "grave in nature" and affirming the necessity for a deeper investigation. The court ruled that such economic offenses are not only serious but qualify as crimes against the nation, warranting an unobstructed probe. The bench dismissed the state’s plea and allowed the ED to proceed under provisions of the Prevention of Money Laundering Act (PMLA).

The court also rejected the harassment allegations, stating that any restrictions during raids, such as detaining officials late into the night, could be justified to prevent evidence tampering or information leaks.

Fresh Raids Target Senior Officials and Associates

Following the court’s green signal, the ED intensified its investigation. It recently conducted fresh raids at the homes of TASMAC Managing Director Visakan, film producer Akash Bhaskaran, and businessman Ratheesh. These individuals are reportedly linked to the ruling DMK party, raising further political tensions.

Visakan was taken in for questioning, and other TASMAC staff were summoned by the ED for further inquiries.

State Seeks Supreme Court Intervention

Refusing to relent, the Tamil Nadu government has now escalated the matter to the Supreme Court. An appeal has been filed seeking relief from the High Court order and questioning the conduct of the ED. The government has also urged the Supreme Court Registrar to list the case for an urgent hearing before the court’s summer vacation.

The Registrar has confirmed that the case will be heard on May 22, 2025, where the apex court is expected to examine the legality of the ED's raids and the grounds of investigation.

Conclusion: High Stakes in the TASMAC Controversy

As this legal and political drama unfolds, the TASMAC issue has become more than just a corruption probe — it represents a larger clash between state governance and federal enforcement authorities. The outcome of the Supreme Court hearing could have significant implications not just for the investigation, but also for the political landscape of Tamil Nadu.