On May 16, 2025, the Enforcement Directorate (ED) intensified its investigation into an alleged ₹1,000 crore financial scam involving the Tamil Nadu State Marketing Corporation (TASMAC). S Visakan, the Managing Director of TASMAC and an IAS officer, was taken to the ED’s Nungambakkam office for interrogation following searches at his Manapakkam residence and other locations in Chennai, including Besant Nagar, Choolaimedu, Anna Salai, Teynampet, and T Nagar. These raids targeted the homes and offices of various businessmen, including film producer Akash Baskaran, although his connection to the case has not been disclosed.

The investigation stems from suspicions of substantial illegal cash generation through inflated bottle pricing between 2016 and 2021. The ED initiated its probe under the Prevention of Money Laundering Act (PMLA) based on cases registered by the Directorate of Vigilance and Anti-Corruption (DVAC). Despite previous summonses ignored by Visakan, the ED detained him for questioning; his wife, also taken along, was released later. A previous attempt by TASMAC to halt the ED’s searches via the Madras High Court was dismissed, allowing the investigation to proceed.

During the raids, ED officials reportedly recovered printouts of WhatsApp chats near Visakan’s residence. These chats allegedly contained details about TASMAC’s liquor procurement, tender processes, and conversations concerning real estate.

The ED’s investigation has also brought to light the involvement of private distilleries, bottling firms, and TASMAC officials in unaccounted cash deals. Evidence suggests manipulation in transport and bar license tenders, with tenders awarded despite having only a single applicant and applicants lacking proper documentation. Additionally, TASMAC shops were reportedly collecting excess amounts over the actual MRP, with distillery companies offering kickbacks to officials for supply orders.

The ED’s actions have sparked political controversy, with the Opposition AIADMK raising questions about alleged connections between TASMAC officials and individuals close to the ruling DMK party. Specifically, alleged WhatsApp conversations between Visakan and Ratheesh, a purported close associate of Deputy Chief Minister Udhayanidhi Stalin, have surfaced, suggesting undue influence in TASMAC’s operations.

The investigation is ongoing, with the ED continuing to probe the financial irregularities and potential political connections in the alleged ₹1,000 crore TASMAC scam.

Sources