ED Strikes Again: Fresh Raids in Tamil Nadu TASMAC Money Laundering Case

Enforcement Directorate launched fresh raids across Tamil Nadu, targeting the Tamil Nadu State Marketing Corporation in a high-profile money laundering investigation under the Prevention of Money Laundering Act (PMLA). The operation covered 10 locations, including the Chennai residence of TASMAC Managing Director Visakan IAS, as part of a probe into alleged financial irregularities worth ₹1,000 crore. The raids, reported by The Hindu, follow earlier searches in March 2025 and signal the ED’s intensified efforts to uncover systemic corruption in Tamil Nadu’s state-run liquor monopoly.

Uncovering a ₹1,000 Crore Scam
The ED’s investigation focuses on manipulated tenders, unaccounted cash transactions, and favoritism in TASMAC’s operations, as revealed during March raids that uncovered incriminating documents. The agency alleges irregularities in transport and bar licensing tenders, with evidence of direct communication between TASMAC officials and distilleries securing undue favors. The probe, based on 41 FIRs filed by Tamil Nadu’s Directorate of Vigilance and Anti-Corruption from 2017 to 2024, also implicates former Excise Minister V. Senthil Balaji, already facing trial in a separate PMLA case. The scale of the scam has sparked political controversy, with opposition parties alleging mismanagement.

Madras High Court’s Backing
The raids come after the Madras High Court, on April 23, 2025, upheld the ED’s authority to investigate, dismissing petitions by the Tamil Nadu government and TASMAC that claimed the March raids were politically motivated. The court ruled that the ED’s actions served the “national interest” and rejected claims of harassment, stating that economic justice outweighs individual inconvenience. This verdict has emboldened the ED to pursue the case aggressively, with searches targeting key officials and agents linked to the scam.

Political and Economic Implications
The ongoing probe has intensified tensions between the DMK-led Tamil Nadu government and the central BJP, with critics like BJP’s K. Annamalai alleging organized corruption in TASMAC. Posts on X reflect public outrage, demanding accountability. The case highlights systemic challenges in India’s liquor trade and the ED’s role in tackling financial crimes under PMLA, with potential ramifications for Tamil Nadu’s political landscape ahead of 2026 elections.