ED investigations triggered by Tamil Nadu's claim of jurisdictional authority
The Enforcement Directorate (ED) is currently investigating a suspected Rs 1,000-crore scam involving TASMAC, Tamil Nadu's state-run liquor monopoly. The investigation focuses on inflated charges on liquor bottles, manipulation of tender processes, and licensing irregularities within TASMAC. Raids have been conducted on properties linked to Tamil Nadu Minister I. Periyasamy and other DMK officials, with the ED scrutinising property and financial records to uncover money laundering and illegal financial transactions.
The controversy surrounding TASMAC has escalated with political accusations from AIADMK leader Edappadi K Palaniswami (EPS), who alleges systematic corruption and illicit gains by the DMK government. EPS claims that liquor is being sold at prices above the maximum retail price, generating approximately Rs 450 crore monthly, which amounts to Rs 22,000 crore over four years, benefiting DMK's top leadership. He also refers to broader corruption, including forced kickbacks from stone quarries and crushers, and links to other illicit activities such as a kidney racket allegedly involving a hospital connected to a ruling party MLA.
However, V Senthil Balaji, the Tamil Nadu State Minister for Electricity and Prohibition, has denied all the allegations made by the ED and opposition parties. He asserted that TASMAC is being run with absolute transparency, and no fresh license has been issued for opening distilleries, and no additional shops have been opened in TASMAC. Senthil Balaji claimed that allegations of irregularities to the tune of Rs 1,000 crore had no basis and were made with ulterior motives without any evidence.
The scandal exposes the tension between the state's liquor revenue dependency and the social and ethical costs of alcohol proliferation in Tamil Nadu. Critics note the contradiction in Tamil Nadu's public health policy, which bans harmful substances like gutkha (chewing tobacco) while maintaining a vast state-controlled liquor monopoly heavily relied on for revenue.
The BJP has been vocal in its criticism of the DMK government, with BJP MLA Vanathi Srinivasan claiming that the DMK had lost the moral right to present the Budget due to the ED's accusations of large-scale corruption in TASMAC. BJP MLAs came dressed in black to draw attention to the alleged corruption in TASMAC. The BJP has also accused the DMK government of covering up corruption by changing the symbol for the rupee in the Budget logo and opposing the three-language policy.
The Tamil Nadu government is facing ED searches at TASMAC offices due to their resistance to the three-language policy and demand for fair treatment in the delimitation process. The Speaker allowed the notice for moving the motion to be taken up on Monday, and Uddhav Thackeray is set to lead protests against the erstwhile Shinde government. Nainar Nagendran, the Leader of the BJP party, stated that they walked out because they were not allowed to discuss the alleged Rs 1,000 crore fraud in TASMAC.
It is important to note that, according to Senthil Balaji, no specific basis for the allegation of irregularities in TASMAC by the ED was mentioned. Furthermore, the DMK government has not been asked to resign over the Rs 1,000 crore fraud in TASMAC, as stated by Senthil Balaji.
The ED's investigation into TASMAC continues, with implications for Tamil Nadu's political landscape and the state's liquor policies. As the investigation unfolds, the public will closely watch developments to understand the extent and nature of any corruption within TASMAC and its impact on the state's revenue and social welfare.
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