The Directorate of Enforcement (ED), Chennai, has seized various incriminating documents during a recent search operations carried out at various premises across Tamil Nadu for various offences related to Tamil Nadu State Marketing Corporation Limited (TASMAC) and its associated entities/persons.
The search was conducted on March 6 under the provisions of Prevention of Money Laundering Act (PMLA), 2002, says a release.
The ED initiated probe on the basis of Multiple FIRs registered under various sections of Prevention of Corruption Act, 1988, related to various issues in the TASMAC. These FIRs fall into the categories of TASMAC shops collecting excess amount than the actual MRP; distillery companies offering kickbacks to the officials of TASMAC for supply orders; senior officials of TASMAC indulging in bribery from the retail TASMAC shops and for transfer and posting of TASMAC staff.
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During the search action in the offices of TASMAC, incriminating data related to transfer postings, transport tender, bar licence tender, indent orders favouring few distillery companies, excess charge of ₹10-30 per bottle by the TASMAC outlets involving the officials of TASMAC were recovered, the release added.
The ED found evidence of manipulation in TASMAC’s transport tender allocations. A glaring issue was the mismatch between the KYC details of the applicant and the Demand Draft (DD), suggesting that the final successful bidder did not even obtain the requisite DD before the application deadline. Additionally, tenders were awarded despite having only a single applicant in the final bid. TASMAC paid over ₹100 crore annually to transporters, the release said.
Further, in the allocation of bar license tenders by TASMAC, evidence related to the manipulation of tender conditions were found. One such glaring issue is that the applicants without any GST/PAN numbers and without any proper KYC documentation, were allotted the final tenders.
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Evidences also revealed direct communication between distillery companies and higher TASMAC officials, exposing efforts to secure increased indent orders and undue favours.
The findings establish the occurrence of various offences under the Prevention of Corruption Act, 1988 and generate Proceeds of Crime as defined under the provisions of PMLA, 2002, the release said.
Distilleries involved
Searches revealed large-scale financial fraud involving distillery companies — SNJ, Kals, Accord, SAIFL, and Shiva Distillery, along with bottling entities such as Devi Bottles, Crystal Bottles, and GLR Holding, exposing a well-orchestrated scheme of unaccounted cash generation and illicit payments.
Investigations also revealed that distilleries systematically inflated expenses and fabricated bogus purchases, particularly through bottle making companies, to siphon off over ₹1,000 Crore in unaccounted cash. These funds were then used for kickbacks to secure increased supply orders from TASMAC.
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Bottling companies played a critical role in this fraudulent scheme by inflating sales figures, allowing distilleries to route excess payments, which were later withdrawn in cash and returned after deducting commissions.
This collusion between distilleries and bottling companies was done through manipulation of financial records, concealed cash flows, and systematic evasion. The findings confirm a network where unaccounted cash was deliberately generated through inflated and bogus expenses and subsequently utilised for purposes leading to huge profits.
Further, the role of employees/associates related to TASMAC, distillery and bottle making companies along with other key associates in the illicit affairs related to TASMAC are being examined/probed.
Further investigation is under progress, the release said.
