- DVAC intensified liquor scam probe against former minister Balaji.
- FIR details widespread collusion in bar licences and tenders.
- Scheme generated illicit funds, causing significant revenue loss.
- High Court denied Balaji bail; privatisation of liquor suggested.
Chennai, Jul 30 (PTI) The DVAC’s intensified probe in the multi-crore liquor scam, revealing a web of collusion allegedly involving former DMK Minister V Senthil Balaji, has sparked a suggestion to privatise retail sales in Tamil Nadu.
A source in the ruling Tamilaga Vettri Kazhagam (TVK) indicated that the government could give up its monopoly in the retail sales of liquor and allow private players keeping a strict hold on them through policy changes.
This suggestion has emerged with the DVAC tightening on Senthil Balaji in the liquor scam over an alleged collusion in issuing TASMAC bar licences, transport tenders, procurement and bottling operations between 2021 and 2025 during the DMK regime.
The investigation targets a web of senior politicians, state bureaucrats, distilleries and bottling operations accused of manipulating tenders and siphoning cash.
Incidentally, the Madras High Court on Thursday dismissed the anticipatory bail plea of Balaji in the corruption case, saying custodial interrogation is very much necessary.
On July 29, the Directorate of Vigilance and Anti-Corruption initiated simultaneous searches in nearly 45 locations across the state targeting the properties of Senthil Balaji and the agency formally registered a FIR naming him, former Tamil Nadu State Marketing Corporation Ltd (TASMAC) managing director S Visakan, senior regional managers and associates. They have been booked for collusion and malpractices spanning from 2021 to 2025.
The Enforcement Directorate and DVAC allege that a systematic framework was resorted to for generating massive illicit funds to the tune of Rs 1,000 crore over inflated operational expenses, fabricated purchases and securing higher liquor supply orders from the state-run liquor retailer TASMAC.
According to the FIR which named seven persons including Senthil Balaji, formerly Minister for Electricity, Prohibition, and Excise, the case was registered against them for allegations of misappropriation and manipulation of procurement and tender processes in allotting bar licences, transport tenders and bogus / inflated transactions by certain distilleries/breweries, transport firms and bottling firms / companies.
TASMAC operates around 5,380 liquor selling retail shops and 3,240 bars in the state. Its district managers are authorised to invite fresh tenders for running bars and selling of empty carton boxes. The revenue to the government from the sale at the retail shops had drastically increased year after year but in contrast, the revenue to government from TASMAC bars had drastically decreased.
During 2021 in Coimbatore, Nilgiris, Tirupur, Erode, Namakkal and Karur districts tenders were invited from public for 857 bars and the tender bid was opened on December 31, 2021 and finalised. The district managers “violated and breached the tender rules by allowing particular participants and extended favour to them,” the FIR stated.
“The tenderers who participated in the tender process formed syndicate with themselves and submitted Earnest Money Deposit (EMD) Demand Draft from the same bank with continuous serial numbers which clearly shows that cartelisation had taken place in the above tenders,” the FIR said.
In the said districts out of 857 bars, 284 were closed but in reality, these 284 bars still operated without renewal of the license. As per Government instruction, any bar not submitting the monthly Demand Draft, should be closed and fresh tender should be floated for the said bar. As the district managers of TASMAC and other officials colluded with the bar owners and did not follow the rules, it resulted in revenue loss to the government to the tune of Rs 17.27 crore in Coimbatore North, Rs.13.58 crore in Coimbatore South district and Rs 1.95 crore in Nilgiris district during 2022 – 2023, it said.
Further, it noted that annually TASMAC paid Rs 100 crore approximately to the transporters. Also, the old/used bottle suppliers had generated cash by supplying bogus invoices or inflating the invoice amount and receiving the payment from distilleries companies, after deducting their commission, they returned the cash amount to respective distilleries. In turn these distilleries used the said cash to provide the kickbacks to the officials for securing the supply orders.
It also found that TASMAC shops collected an excess amount than the actual MRP rate i.e. collecting up to Rs 500 excess for foreign liquor and depending upon the brand of the liquor Rs 10 to Rs 100 was illegally collected from the customer between 2021 to 2025 in an organised manner.
The alarming proportions of the liquor scam in the state made the AIADMK general secretary Edappadi K Palaniswami dub Senthil Balaji as “Rs 10 minister” during his political speeches. The moniker became a prominent political weapon with even TVK chief C Joseph Vijay labelling him as “ten rupees minister.” A source in the TVK said the government should pursue its mission to eradicate corruption and plug the leakages. It could allow private players to run the shops under strict government vigilance.
(Disclaimer: This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)
