Tasmac probe hits new milestone as ED questions Visakan

The ED’s actions follow fresh raids conducted across 12 locations in Tamil Nadu, including at the home of film producer Akash, in connection with money laundering allegations tied to TASMAC’s operations.

ED probes KS Mart Solutions

The agency has also begun a probe into the role of KS Mart Solutions, a company that reportedly secures many government tenders under the DMK government, following the raids. The company allegedly uses Keltron (Kerala State Electronics Development Corporation Limited) as a front in the tender process. In collaboration with Keltron, KS Mart reportedly won contracts worth Rs 950 crore from the School Education Department, including the Smart Classroom project.

Also read: ED ‘unravels’ Rs 1,000-crore liquor scam in TN, confirms The Federal story

What is Visakan charged of?

According to ED officials, the questioning of Visakan, a promoted IAS officer, started on Friday (May 16) morning at his residence in CR Puram, Manapakkam. The probe focuses on financial irregularities uncovered during earlier raids at Tasmac’s headquarters and other premises between March 6 and 8 this year. The ED alleges that Visakan and other senior Tasmac officials were involved in a sophisticated scheme involving tender manipulation, overcharging at liquor outlets, and illicit payments to secure supply orders from distilleries.

The agency had previously summoned Visakan, along with the company’s General Managers S Sangeetha and T Ramaduraimurugan, and Deputy General Manager Jothi Shankar, on April 24 following the Madras High Court’s dismissal of Tasmac’s petitions challenging the ED’s raids. Sources say that Visakan had sought additional time to respond to earlier summons, but the ED’s latest move suggests a more aggressive approach to the investigation.

Also read: Madras HC seeks response on transfer of TASMAC corruption cases to CBI

Crackdown on money laundering network

The central agency intensified its probe into the alleged Rs 1,000 crore ‘scam’ by conducting searches targeting individuals suspected of laundering bribe money, including a middleman, Tasmac’s zonal deputy manager (DM), and senior deputy manager (SDM), along with their network. Sources say that these individuals facilitated the siphoning of illicit funds through fake invoices, inflated tenders, and shell companies, allegedly channelling the proceeds into various sectors, including the film industry, as part of a complex money laundering.

All about the ‘scam’

The Tasmac liquor ‘scam’, estimated at Rs 1,000 crore, revolves around alleged systemic corruption within Tamil Nadu’s state-run liquor monopoly, which generates approximately Rs 44,000 crore in annual revenue. The ED’s investigation was triggered by multiple FIRs filed by the Directorate of Vigilance and Anti-Corruption (DVAC) under the Prevention of Corruption Act, 1988. These FIRs highlighted malpractices such as overcharging customers by Rs 10-30 per bottle, accepting kickbacks from distilleries, and manipulating staff transfers and bar licensing tenders.

Also read: TN: ED summons Tasmac top brass in ‘Rs 1,000-cr liquor scam’ probe

Previous raids

The ED’s March raids uncovered incriminating evidence, including documents showing favouritism toward distilleries like SNJ, Kals, Accord, SAIFL, and Shiva Distillery, as well as bottling firms like Devi Bottles and Crystal Bottles. The agency alleges that these entities inflated expenses and fabricated purchases to siphon off unaccounted cash, which was then used for bribes to secure larger supply orders. The investigation also revealed discrepancies in transportation tenders, with consignments meant for retail outlets being diverted, allegedly under the influence of powerful figures.

Political figures

The scam has drawn significant attention due to its alleged links to political figures, including former excise minister V Senthil Balaji, who oversees Tasmac. The ED’s findings point to a network of corruption involving politicians, bureaucrats, and private entities, with funds reportedly funnelled into shell companies and, in some cases, the film industry, as seen in the raid on producer Akash’s residence.

Also read: Madras HC rejects pleas of TN govt, TASMAC; upholds ED probe

The ED’s actions come after months of legal battles with TASMAC and the Tamil Nadu government, which had challenged the agency’s raids as illegal and a violation of federal principles. The Madras High Court’s rejection of these petitions in April 2025 cleared the way for the ED to intensify its investigation, leading to the latest round of searches and summons.

DMK rubbishes allegations

The DMK, in response, has dismissed the allegations as politically motivated, with Balaji asserting that Tasmac’s tender processes are transparent and that the ED’s actions are an attempt to defame the state government. The party has also accused the central government of using the ED to target opposition-ruled states, citing similar probes in other regions.