Tamil Nadu: ED Conducts Third Consecutive Day of Raids at TASMAC and Liquor Contractors’ Premises

Chennai: The Enforcement Directorate (ED) has extended its raids for the third consecutive day at the Tamil Nadu State Marketing Corporation (TASMAC) headquarters and several liquor contractors’ offices in Chennai, in connection with alleged financial irregularities within the state-run corporation.

ED Raids at TASMAC Headquarters and Liquor Contractors’ Offices

TASMAC, which is the sole distributor of Indian Made Foreign Liquor (IMFL) in Tamil Nadu, is under scrutiny as ED officials continue their search operations. The raids are being conducted at the TASMAC headquarters, located in the Thalamuthu Natarajan Building in Egmore, and at major liquor contractors’ offices across Chennai.

Sources have confirmed that raids are also taking place at liquor companies owned by prominent DMK leader Jagathrakshakan, with officials searching the headquarters of SNJ Distilleries on Greams Road, Thousand Lights, and Akkadu Distillers’ offices in T Nagar. Additionally, ED officials are conducting searches at the residence of an MGM liquor contractor on Radha Krishnan Salai for the third consecutive day.

ED Expands Search Operations to Coimbatore and Other Locations

The ED’s search operations have also extended beyond Chennai. Raids are taking place at Shiva Distillery in Narasimhanaickenpalayam, Coimbatore, as part of the ongoing investigation into alleged financial misconduct.

The agency is investigating multiple locations connected to Tamil Nadu Minister V. Senthil Balaji, government contractors, and other entities linked to the case.

Also Read: Tamilisai Soundararajan Detained During Signature Campaign for Three-Language Policy

ED’s Actions Linked to Money Laundering Investigation

The ED’s raids are part of a broader investigation into financial irregularities within TASMAC and potential links to money laundering activities. The searches are focused on uncovering illicit financial activities and misappropriation of funds linked to the state-run corporation.

On March 6, a team of around 20 ED officials conducted searches at various locations in Karur, including residences of individuals allegedly connected to the ongoing investigation. These locations included the homes of Mani, owner of Kongu Mess, and Sakthivel, owner of Sakthi Mess, as well as the residence of MCS Sankar, a close associate of Senthil Balaji.

Background on Senthil Balaji’s Arrest and Alleged Scam

Tamil Nadu Minister V. Senthil Balaji has been at the center of the ED’s investigations. On June 14, 2023, he was arrested by the ED in connection with a money laundering case linked to a cash-for-jobs scam during his tenure as Transport Minister in the AIADMK government.

Following his arrest, Balaji switched allegiance to the DMK and was appointed as the Minister for Electricity and Prohibition. On August 12, 2023, the ED filed a charge sheet accusing him of misusing his official position for personal financial gain. The charge sheet alleged that Balaji, in collusion with his brother R.V. Ashok Kumar, personal aides, and Transport Department officials, orchestrated the scam and engaged in money laundering.

Despite Balaji’s denials, investigations revealed that his aides Shanmugam and Karthikeyan were operating under his direct instructions. The ED claims the scam involved money laundering through layering and integration into the formal economy via cash deposits and third-party associates.

Legal Proceedings and Bail Grant

Balaji’s multiple bail pleas were dismissed by both lower courts and the High Court. However, after spending over a year in jail, he was granted bail by the Supreme Court of India on September 26, 2024.