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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Cong takes swipe at PM over India not being part of US-led 'Pax Silica' grouping
New Delh (PTI) The Congress on Saturday said it is perhaps not very surprising that India is not part of a US-led strategic initiative to build a secure silicon supply chain, given the "sharp downturn" in the Trump-Modi ties, and asserted that it would have been to "our advantage if we had been part of this group".
Congress general secretary in charge of communications Jairam Ramesh took a swipe at Prime Minister Narendra Modi, saying the news of India not being part of the group comes after the PM had enthusiastically posted on social media about a telephone call with his "once-upon-a-time good friend and a recipient of many hugs in Ahmedabad, Houston, and Washington DC".
In a lengthy post on X, Ramesh said, "According to some news reports, the US has excluded India from a nine-nation initiative it has launched to reduce Chinese control on high-tech supply chains. The agreement is called Pax Silica, clearly as a counter to Pax Sinica. The nations included (for the moment at least) are the US, Japan, the Republic of Korea, Singapore, the Netherlands, the United Kingdom, Israel, the United Arab Emirates, and Australia."
"Given the sharp downturn in the Trump-Modi ties since May 10th, 2025, it is perhaps not very surprising that India has not been included. Undoubtedly, it would have been to our advantage if we had been part of this group."
"This news comes a day after the PM had enthusiastically posted on his telephone call with his once-upon-a-time good friend and a recipient of many hugs in Ahmedabad, Houston, and Washington DC," the Congress leader asserted.
The new US-led strategic initiative, rooted in deep cooperation with trusted allies, has been launched to build a secure and innovation-driven silicon supply chain.
According to the US State Department, the initiative called 'Pax Silica' aims to reduce coercive dependencies, protect the materials and capabilities foundational to artificial intelligence (AI), and ensure aligned nations can develop and deploy transformative technologies at scale.
The initiative includes Japan, South Korea, Singapore, the Netherlands, the United Kingdom, Israel, the United Arab Emirates, and Australia. With the exception of India, all other QUAD countries -- Japan, Australia and the US -- are part of the new initiative.
New Delhi will host the India-AI Impact Summit 2026 on February 19-20, focusing on the principles of 'People, Planet, and Progress'. The summit, announced by Prime Minister Narendra Modi at the France AI Action Summit, will be the first-ever global AI summit hosted in the Global South.
Prime Minister Modi and US President Trump on Thursday discussed ways to sustain momentum in the bilateral economic partnership in a phone conversation amid signs of the two sides inching closer to firming up a much-awaited trade deal.
The phone call between the two leaders came on a day Indian and American negotiators concluded two-day talks on the proposed bilateral trade agreement that is expected to provide relief to India from the Trump administration's whopping 50 per cent tariffs on Indian goods.
In a social media post, Modi had described the conversation as "warm and engaging".
"We reviewed the progress in our bilateral relations and discussed regional and international developments. India and the US will continue to work together for global peace, stability and prosperity," Modi had said without making any reference to trade ties.
