Tamil Nadu Chief Minister Joseph Vijay has ordered a sweeping overhaul of the State-run liquor network, TASMAC, in his first Cabinet meeting after assuming office, directing officials to eliminate alleged leakages and ensure all revenue flows directly into the State treasury.
According to senior government sources, Vijay was briefed about an estimated Rs 102 crore being diverted every month through unofficial “party fund” collections embedded within TASMAC operations. Over the past five years, these leakages may have amounted to nearly Rs 1,600 crore, bringing renewed scrutiny to alleged systemic irregularities in the liquor distribution network.
The Chief Minister has instructed authorities to dismantle entrenched informal cash collection systems across TASMAC’s extensive supply chain, which includes over 4,000 retail outlets. The reform exercise is being led by Prohibition and Excise Minister K Vignesh, who said the government is committed to building a “foolproof transparency mechanism.”
“The Chief Minister made it clear that revenue through corruption will not be tolerated. Every rupee must reach the treasury,” Vignesh told NDTV.
Officials said unofficial collections had become institutionalised over nearly two decades. Allegedly, fixed amounts were collected per liquor case—around Rs 90 for standard liquor cases, Rs 40 for beer, and Rs 20 for wine—across warehouses, transport systems, and retail outlets. With nearly 88 lakh consumers purchasing liquor monthly, these practices generated significant unaccounted cash flows.
The government is also reviewing the controversial Rs 10 empty bottle deposit system, which officials believe has been another major source of irregularities. Internal estimates suggest that discrepancies in bottle returns could have led to corruption worth up to Rs 300 crore monthly. Plans are underway to either integrate the deposit into the MRP or introduce a digital refund mechanism.
The crackdown forms part of a broader anti-corruption push by the Tamilaga Vettri Kazhagam (TVK) government. TASMAC has been prioritised due to the scale of alleged leakages, with other sectors such as mining likely to face similar scrutiny.
In a parallel move aligned with its anti-addiction agenda, the government has already shut down 717 TASMAC outlets, a decision expected to reduce annual revenue by around Rs 8,000 crore. However, officials have ruled out raising liquor prices to offset the loss.
“The message is clear—liquor sales cannot be a tool for exploitation or corruption,” a senior official said.
