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TASMAC Introduces Strict Three-Stage Penalty System to Stop Liquor Overcharging

TASMAC Introduces Strict Three-Stage Penalty System to Stop Liquor Overcharging

Laaheerie P
July 27, 2026

The Tamil Nadu government has introduced stricter disciplinary measures to curb the practice of overcharging customers above the Maximum Retail Price (MRP) at state-run liquor outlets, following directions from the Madras High Court.

The revised guidelines, issued by the Tamil Nadu State Marketing Corporation (TASMAC), prescribe a progressive system of punishment for employees found selling liquor at prices higher than the permitted MRP. The measures are aimed at addressing persistent complaints from consumers about illegal price markups at retail outlets across the state.

The new rules apply to shop supervisors, salesmen and assistant salesmen working at TASMAC retail outlets. District managers have been instructed to ensure strict implementation of the guidelines with immediate effect. Under the revised disciplinary framework, a first-time offender will face a one-month temporary suspension, a monetary fine and loss of pay for the suspension period. After returning to duty, the employee will be required to submit a written undertaking promising not to repeat the offence. The employee will also be transferred to a low-sales liquor outlet within the district.

A second violation will attract tougher action. Employees caught overcharging customers for the second time will be suspended for three months without pay, fined and subsequently transferred to a liquor depot for a minimum period of three months. The most severe punishment has been prescribed for repeat offenders. An employee caught overcharging customers for the third time will be immediately suspended and subjected to a departmental inquiry. If the charges are established, the employee will face permanent dismissal from service.

The revised rules are intended to strengthen accountability among TASMAC staff and deter repeated violations. By introducing escalating penalties, the corporation is seeking to ensure that liquor is sold strictly at the approved MRP and to provide greater protection to consumers from unauthorised overcharging.

The action comes amid continued concerns over alleged price markups at TASMAC outlets, with the corporation now moving to enforce a stricter disciplinary mechanism in line with the Madras High Court's directions.

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TASMACTamilNaduLiquorOverpricingLiquorPriceMRPTamilNaduNewsMadrasHighCourtTASMACRulesConsumerRightsLiquorShops
TASMAC Introduces Strict Three-Stage Penalty System to Stop Liquor Overcharging - The Morning Voice