Tamil Nadu widens liquor corruption probe, books DMK ex-minister Senthil Balaji

The searches followed the registration of a First Information Report on Tuesday night naming Senthil Balaji; former TASMAC Managing Director S Visakan, IAS; former senior regional managers T Rama Durai Murugan and R Panneer Selvam; former ministerial aide Bhaskar; and two private individuals, Rathesh Raj Shanmugavel and S Karthik alias Mulanoor Karthik. The FIR also refers to unnamed public servants, transport firms, bottling companies and distilleries.

All those named were unavailable for comment.

Rather than focusing on a single transaction, the FIR portrays what investigators allege was an organised network operating between 2021 and 2025 that influenced nearly every major commercial interface between TASMAC and private players.

According to the FIR, investigators allege that district and regional officials manipulated tenders for TASMAC bars and transport contracts, favoured selected bidders, allowed cartelisation among applicants, and enabled bars to continue operating despite expired licences, resulting in substantial losses to the government. It cites alleged irregularities in bar tenders across Coimbatore, Tiruppur, Erode, Namakkal, the Nilgiris and Karur, and claims that officials colluded with bar operators instead of conducting fresh tenders where required.

The FIR also alleges that transport tenders for 45 TASMAC depots were manipulated through the misuse of earnest money deposit demand drafts submitted by one applicant. Investigators claim that unused demand drafts were allegedly diverted to facilitate other transport contractors, allowing them to secure contracts.

It further alleges that tender procedures were deliberately bypassed and that the process involved fraud, manipulation and illicit financial transactions.

Probe into operations

Another strand of the investigation concerns the operation of TASMAC bars. The FIR alleges that licences were frequently controlled not by successful bidders but by third parties acting through organised syndicates. It specifically refers to what investigators describe as a “Karur gang”, alleging that it exercised influence over bar allotments across the state and pressured TASMAC officials regarding licence allocations.

Investigators have also incorporated allegations that first surfaced in material submitted by the Enforcement Directorate. According to the FIR, distillery and bottle suppliers allegedly generated unaccounted cash through inflated or bogus invoices before routing the money back to distilleries, which then allegedly used it to provide kickbacks for securing liquor supply orders. The FIR cites transactions involving several private companies while alleging that these practices formed part of a broader system benefiting selected manufacturers.

Perhaps the most politically sensitive allegation concerns Rathesh Raj Shanmugavel, whom the FIR describes as an “unauthorised power broker” who allegedly exercised influence over official decision-making inside TASMAC. It alleges that he influenced decisions relating to liquor brand approvals, bar licence tenders and administrative transfers, and that the then Managing Director acted on directions allegedly conveyed through him. These remain allegations recorded by investigators in the FIR.

The FIR concludes that there is prima facie material suggesting criminal conspiracy, criminal breach of trust, cheating, abuse of official position and offences under the Prevention of Corruption Act. It alleges that a nexus between political executives, senior TASMAC officials, private individuals and commercial entities enabled the manipulation of decision-making processes and caused serious loss to the government exchequer. The case has been registered under provisions of the Indian Penal Code and the Bharatiya Nyaya Sanhita, depending on the period during which the alleged offences occurred, along with sections of the Prevention of Corruption Act.