ED detects 'unaccounted' cash deals worth Rs 1,000 crore in TASMAC operations in Tamil Nadu
New Delhi, Mar 13 (PTI): The Enforcement Directorate Thursday said it has found "multiple irregularities" in the operations of TASMAC that has monopoly over liquor trade in Tamil Nadu, including "manipulation" in the tender processes and "unaccounted" cash transactions worth Rs 1,000 crore through distillery companies.
The federal agency claimed in a statement that it got "evidence" suggesting these corrupt practices after it raided the employees, corporate offices of distilleries and plants of the Tamil Nadu State Marketing Corporation Limited (TASMAC) on March 6.
ED sources, on the day of the raids, had said the searches were also conducted against "key associates" linked to prohibition and excise department minister Senthil Balaji.
The ED said it found "incriminating" data related to transfer postings, transport and bar licence tenders, indent orders "favouring" few distillery companies, excess charge of Rs 10-30 per bottle by TASMAC outlets, with the "involvement" of TASMAC officials, during the searches.
It said this data shows "manipulation" in TASMAC's transport tender allocations where a "glaring" issue was the "mismatch" between the KYC details of the applicant and the demand draft (DD), suggesting that the final successful bidder did not even obtain the requisite DD before the application deadline.
Tenders were awarded despite having only a single applicant in the final bid. TASMAC paid over Rs 100 crore annually to transporters, as per the ED.
In the case of allocation of bar licence tenders by TASMAC, "evidence" related to "manipulation" of tender conditions was found including a "glaring" issue of applicants without any GST/PAN numbers and KYC documentation being allotted the final tenders, it said.
The agency said it found records to show "direct" communication between distillery companies and higher TASMAC officials, exposing efforts to secure increased indent orders and "undue" favours.
The searches also found "large-scale" financial fraud involving distillery companies like SNJ, Kals, Accord, SAIFL, and Shiva Distillery and bottling entities such as Devi Bottles, Crystal Bottles and GLR Holding, the ED alleged.
The distilleries "systematically inflated" expenses and "fabricated" bogus purchases, particularly through bottle-making companies, to siphon off over Rs 1,000 crore in "unaccounted" cash.
These funds were then used as "kickbacks" to secure increased supply orders from TASMAC, as per the ED.
In the case of the bottling companies, the ED found that they "inflated" sales figures, allowing distilleries to route excess payments, which were later withdrawn in cash and returned after deducting commissions.
"This collusion between distilleries and bottling companies was done through manipulation of financial records, concealed cash flows, and systematic evasion.
"The findings confirm a network where unaccounted cash was deliberately generated through inflated and bogus expenses and subsequently utilized for purposes leading to huge profits," the agency alleged.
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Another North Goa nightclub sealed; Kejriwal says corruption led to fire tragedy
Panaji (PTI): As part of a crackdown against tourist establishments violating laws and safety norms in the aftermath of the Arpora fire tragedy, Goa authorities on Saturday sealed a renowned club at Vagator and revoked the fire department NOC of another club.
Cafe CO2 Goa, located on a cliff overlooking the Arabian Sea at Vagator beach in North Goa, was sealed. The move came two days after Goya Club, also in Vagator, was shut down for alleged violations of rules.
Elsewhere, campaigning for local body polls, AAP leader Arvind Kejriwal said the fire incident at Birch by Romeo Lane nightclub at Arpora, which claimed 25 lives on December 6, happened because the BJP government in the state was corrupt.
An inspection of Cafe CO2 Goa by a state government-appointed team revealed that the establishment, with a seating capacity of 250, did not possess a no-objection certificate (NOC) of the Fire and Emergency Services Department. The club, which sits atop Ozrant Cliff, also did not have structural stability, the team found.
The Fire and Emergency Services on Saturday also revoked the NOC issued to Diaz Pool Club and Bar at Anjuna as the fire extinguishers installed in the establishment were found to be inadequate, said divisional fire officer Shripad Gawas.
A notice was issued to Nitin Wadhwa, the partner of the club, he said in the order.
Campaigning at Chimbel village near Panaji in support of his party's Zilla Panchayat election candidate, Aam Aadmi Party leader Kejriwal said the nightclub fire at Arpora happened because of the "corruption of the Pramod Sawant-led state government."
"Why this fire incident happened? I read in the newspapers that the nightclub had no occupancy certificate, no building licence, no excise licence, no construction licence or trade licence. The entire club was illegal but still it was going on," he said.
"How could it go on? Couldn't Pramod Sawant or anyone else see it? I was told that hafta (bribe) was being paid," the former Delhi chief minister said.
A person can not work without bribing officials in the coastal state, Kejriwal said, alleging that officers, MLAs and even ministers are accepting bribes.
