Tamil Nadu: CM Vijay Orders TASMAC Cleanup Drive, Cites Alleged INR 102 Crore Monthly Diversion and INR 1,600 Crore Revenue Loss

In a major administrative overhaul during his first Cabinet meeting on Friday, newly sworn-in Tamil Nadu Chief Minister Joseph Vijay launched a sweeping crackdown on the state’s state-run liquor corporation, TASMAC. Citing massive institutionalized revenue leakages, Chief Minister Vijay directed officials to dismantle a decades-old informal "party fund" collection system. The state government estimates that unofficial channels have been diverting approximately ₹102 crore every month, causing a projected loss of nearly ₹1,600 crore to the state exchequer over the last five years.

The directives target the Tamil Nadu State Marketing Corporation (TASMAC), which operates a wholesale and retail network of nearly 4,048 registered outlets. Senior government sources indicated that the probe casts severe scrutiny on the previous DMK administration’s alleged utilization of the network for political funding. Chief Minister Vijay reportedly ordered that every rupee generated from liquor sales must directly reach the state treasury rather than informal political reserves. Tamil Nadu CM Vijay Shuts 717 TASMAC Liquor Outlets, TVK Faces Early Legal Battle With Challenge to MLA’s Win Ahead of Trust Vote.

The systemic reforms are being spearheaded by the newly appointed Minister for Prohibition and Excise, K. Vignesh. The 37-year-old, first-time minister from a modest background stated that the administration is actively building a foolproof transparency mechanism to guarantee fiscal accountability across the entire supply chain.

According to Excise Department sources, the unofficial collection system operated seamlessly from distilleries and warehouses down to retail counters. Unofficial levies were allegedly institutionalized per case of alcohol: approximately ₹90 per case of standard liquor (ranging from 180ml to 750ml bottles), ₹40 per case of beer, and ₹20 per case of wine were systematically diverted into political funds. With an estimated 88 lakh consumers purchasing from TASMAC monthly, the leakages reached massive proportions.

Beyond supply-chain corruption, the new government is also reviewing the controversial ₹10 empty-bottle deposit-and-buyback scheme. Out of approximately one crore bottles sold monthly, officials discovered that only about 60% were successfully returned through official channels. The remaining unaccounted deposits allegedly fueled an illicit parallel network, resulting in irregularities estimated at up to ₹300 crore per month. The state is currently exploring digitised refund mechanisms or integrating the deposit directly into the Maximum Retail Price (MRP). What is TASMAC? How Many Liquor Shops are Operating in Tamil Nadu Today?.

This fiscal tightening coincides with the Tamilaga Vettri Kazhagam (TVK) government’s broader anti-addiction policy. In one of his inaugural decisions, Chief Minister Vijay ordered the immediate closure of 717 TASMAC retail shops across Tamil Nadu. While the closures are projected to cost the state approximately ₹8,000 crore in annual revenue, the government has firmly ruled out raising liquor prices to cover the deficit.

Administrative sources close to the Chief Minister indicate that the TASMAC investigation is merely the first phase of a broader anti-corruption drive. The state government has instructed officials across all public sectors to flag leakages, with the mining department reportedly designated as the next major focus of state scrutiny.

(The above story first appeared on LatestLY on Jun 07, 2026 10:05 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).