Tasmac probe: ED slams TN govt for not appointing nodal officer

The Enforcement Directorate (ED) in Tamil Nadu is struggling to investigate multiple scams, including an alleged liquor scam involving the Tamil Nadu State Marketing Corporation (Tasmac). The main hurdle is the state’s alleged failure to appoint a nodal officer to assist central agencies like the ED, CBI, and Customs, making Tamil Nadu the only state in India without one.

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The ED’s Chennai unit has repeatedly written to Tamil Nadu’s DGP and chief secretary, urging them to appoint a nodal officer, but has received no response. In 2022, the ED’s Delhi headquarters sent a letter to the then-DGP and chief secretary, requesting the appointment as per Financial Action Task Force (FATF) guidelines. The DGP promised to appoint an SP-rank officer, but no action has been taken despite multiple reminders. “It’s not easy in Tamil Nadu to get a copy of FIR,” a senior ED officer said.

Role of nodal officer

A nodal officer acts as a link between central agencies and the state. Agencies like the ED share details of offences, and the nodal officer sends back information in specific formats (like ED’s Money Laundering-1 and Money Laundering -2 forms) every month including FIR copies. This helps streamline investigations into crimes like money laundering. Most states, including Congress-ruled, have appointed nodal officers, but Tamil Nadu has not.

The FATF is an international body that fights money laundering and terror funding. India, a member since 2010, works through the Department of Revenue (DOR) under the Ministry of Finance. At the state level, governments must implement FATF guidelines, but the ED claims Tamil Nadu has not set up the required framework, including the nodal officer appointment.

AP liquor scam probe

The investigation into the Andhra Pradesh liquor scam, involving an alleged ₹3,200 crore fraud during the YSRCP government (2019-2024), has been reportedly effective due to the proactive role of the state’s Special Investigation Team (SIT).

Formed by the TDP-led NDA government in November 2024, the SIT, supported by the Andhra Pradesh CID, has systematically gathered evidence from multiple government departments, including the Andhra Pradesh State Beverages Corporation Limited (APSBCL) and the Excise Department. The SIT’s access to departmental records, such as liquor procurement reports and financial transactions, enabled it to trace a money trail involving kickbacks, shell companies, and manual order manipulations.

Also read | TN minister Muthusamy terms ED raids on Tasmac ‘political vendetta’

Key evidence, including 74 hard drives, over 1,000 documents, and statements recorded under Section 164 of the CrPC, helped identify violations like criminal breach of trust, cheating, and corruption under IPC sections 409, 420, and the Prevention of Corruption Act. The SIT’s arrests, including prime accused Kasireddy Raja Shekhar Reddy, and coordination with the ED for PMLA probes, highlight its ability to pinpoint accomplices and policy manipulations, ensuring a robust investigation.

TN probe challenges

In contrast, the ED investigation into the alleged ₹1,000 crore TASMAC liquor scam in Tamil Nadu faces significant obstacles due to the lack of cooperation from the state authorities.

ED officials said no documents have been shared by the Tamil Nadu police or other government departments, severely hampering their ability to prosecute cases under the Prevention of Money Laundering Act (PMLA). The absence of a nodal officer, despite repeated requests since 2022, further complicates coordination, making Tamil Nadu the only state without such a liaison for central agencies.

ED officials accused Tamil Nadu police of allegedly closing many corruption cases booked by DVAC (predicate offences) without proper investigation after knowing that the federal agency has been working on it.

BJP misusing ED, IT: DMK

The ruling DMK has accused the BJP-led central government of misusing agencies like the ED for “vendetta politics.” DMK leaders claim the ED’s raids on TASMAC and ministers like KN Nehru are an attempt to tarnish their image ahead of the 2026 Tamil Nadu Assembly elections.

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The DMK vows to challenge these actions legally and take the issue to the public. The DMK insists the raids lack evidence and are politically motivated, while the BJP and AIADMK claim the scam exposes corruption in the DMK government.

Madras HC ruling

Interestingly, in 2023, the Madras High Court rejected a plea to share First Information Reports (FIRs) filed by Tamil Nadu’s Directorate of Vigilance and Anti-Corruption (DVAC) with the ED. The petitioner, R Karthikeyan, argued that DVAC should share FIRs to help the ED investigate illegal money flows. However, the court ruled that no law requires DVAC to share FIRs with the ED, further complicating the agency’s work.