DVAC Raids 45 Locations in Alleged TASMAC Scam Involving Bar Licences and Procurement

The Tamil Nadu Directorate of Vigilance and Anti-Corruption (DVAC) has intensified its probe into alleged irregularities in the TASMAC liquor distribution system, registering a case against former minister and DMK leader V Senthil Balaji, former TASMAC Managing Director S Visakan, and five others. The agency also conducted searches at 45 locations across Tamil Nadu, including 14 in Chennai.

In a significant development, the Madras High Court on Thursday dismissed Senthil Balaji’s anticipatory bail petition. Rejecting the plea, Justice G.K. Ilanthiraiyan observed that the prosecution had alleged substantial loss to the state exchequer and held that custodial interrogation was necessary for the investigation.

The FIR alleges the existence of an organised network known as the “Karur gang”, which investigators claim manipulated bar licence allocations, influenced administrative decisions and secured contracts through favoured bidders. The DVAC has alleged that TASMAC operations between 2021 and 2025 were marred by tender cartelisation, manipulation of procurement processes, operation of bars without valid licences and revenue losses to the government.

Investigators have also alleged irregularities in transport tenders, a cash-kickback network involving distilleries, bottling companies and suppliers, and systematic overcharging of customers above the Maximum Retail Price (MRP) at several TASMAC outlets.

The case has renewed debate over accountability in public sector enterprises, particularly organisations managing large public revenues. Analysts say the allegations underscore the need for stronger procurement safeguards, independent audits, digital monitoring and greater transparency in state-run corporations.

Balaji has denied all allegations, stating that searches at his premises yielded no incriminating documents and accusing the government of politically targeting former ministers. The FIR has been filed under provisions of the Prevention of Corruption Act, the IPC and the Bharatiya Nyaya Sanhita. With the High Court refusing anticipatory bail, the DVAC investigation is expected to gather further momentum as it examines the alleged financial and administrative irregularities within TASMAC.