‘Something wrong within Tasmac’: Madras HC quashes action against staffers
Justice Pugazhendi of Madurai Bench remarks that available documents indicate “something is wrong within the entire Tasmac system”
The Madurai Bench of the Madras High Court, headed by Justice B Pugazhendi, has nullified disciplinary action against The Tamil Nadu State Marketing Corporation (Tasmac) employees who spoke to the media about alleged irregularities within the state-run liquor retailer.
In a significant observation, Justice Pugazhendi remarked, “When looking at the available documents, it is evident that something is wrong within the entire Tasmac system.”
The court’s ruling came in response to a petition filed by three Tasmac employees—Mayakannan, Murugan, and Ramasamy from Madurai—who challenged the punitive measures imposed on them for exposing alleged corruption.
Also read: TASMAC ‘scam’ allegations political deception: TN CM Stalin slams Opposition
Background of the case
Tasmac, a state-owned monopoly managing around 7,000 liquor outlets across Tamil Nadu, has been under intense scrutiny following allegations of widespread financial irregularities and corruption.
The Enforcement Directorate (ED) initiated a money-laundering investigation based on 41 First Information Reports (FIRs) filed by the Tamil Nadu Directorate of Vigilance and Anti-Corruption (DVAC) between 2014 and 2021.
These FIRs alleged malpractices such as overpricing liquor, manipulation in tender processes, kickbacks from distillery companies, and illicit payments related to staff transfers and bar licenses.
Madurai Bench ruling
The three Tasmac employees named above faced disciplinary action for speaking to the media about alleged corruption within the organization.
The court quashed the actions against Mayakannan, Murugan, and Ramasamy, emphasizing that Tasmac cannot allow corruption to persist within its operations. Justice Pugazhendi’s observation that “something is wrong in the entire Tasmac system” underscores concerns about systemic issues within the state-run liquor monopoly.
The judge further stated that allowing corruption in an entity meant to curb illicit liquor sales is unacceptable.
Also read: Tasmac ‘scam’: What next after Supreme Court’s interim stay?
PIL and ongoing probe
On May 14, a public interest litigation (PIL) filed by Tirunelveli-based lawyer K Venkatachalapathy urged the Madras High Court to transfer the 41 DVAC FIRs to the Central Bureau of Investigation (CBI) for an independent probe, citing the scale of the alleged corruption.
The court directed the Tamil Nadu government to file a status report on these FIRs, a directive reiterated on May 23, as the state was asked to clarify the progress of the investigations.
Relief in Supreme Court
In the meantime, the Supreme Court on May 22 stayed theEnforcement Directorate’s (ED) investigation and searches into Tasmac, saying the central agency was “crossing all limits”.
“Your ED is crossing all limits,” Chief Justice of India BR Gavai told Additional Solicitor General SV Raju during the hearing. “You are totally violating the federal structure of the country,” CJI Gavai said.