Liquor, Lies, And Looming Elections: Tamil Nadu's 1000 Crore TASMAC Scandal

A Chief Minister attending the routine NITI Aayog meeting in New Delhi shouldn't, in the normal course of events, be political news.

But in the situation as it is obtaining in Tamil Nadu, Stalin heading to the national capital to be part of the NITI Aayog's Governing Council meet on May 24 is indeed triggering intense speculation.

For this was the same Chief Minister who had pooh-poohed the NITI Aayog session last year and boycotted it in a symbolic show of political one-upmanship. So when his government and family are under immense pressure over the TasmacGate in the State, Stalin making a beeline to Delhi has come under scrutiny.

Is he trying to pull strings and save face for himself, his family, and the party? At least former Chief Minister Edappadi Palaniswami thinks so, as he was quick to pounce on Stalin’s impending visit the moment a formal communiqué on it arrived.

It is not just Edappadi, but his party's ally, the BJP, is also relentlessly targeting the State government and the first family over the TasmacGate. Though the mainstream media is trying its best to focus attention elsewhere, the TasmacGate is proving to be a big shocker and may have a major impact in the 2026 State elections.

The scam has tumbled out of a carefully concealed closet thanks to a series of high-profile raids conducted by the Enforcement Directorate (ED), targeting officials of the Tamil Nadu State Marketing Corporation (TASMAC) and individuals allegedly linked to the State’s first family.

The TASMAC Scam: What the ED Has Unearthed

The investigation into the scandal, running into ₹1,000 crore if not more, has rattled the DMK, as some of the people who are on the run were well-known parts of Deputy Chief Minister Udhayanidhi Stalin's film business.

The ED’s probe into TASMAC has revealed large-scale financial irregularities, including:

Kickbacks & Bribery: Distillery companies, reportedly owned by those close to the power centre in the State, allegedly paid bribes to TASMAC officials to secure supply orders.

Overpricing & Fraudulent Transactions: Liquor bottles were reportedly sold at inflated prices, with excess revenue siphoned off through shell companies.

Tender Manipulation: Bar licenses and transport tenders were allegedly awarded to firms without proper documentation, raising suspicions of favouritism.

Political Links: Close aides of Udhayanidhi Stalin have come under the scanner, with reports suggesting that some individuals fled the country before the raids.

The Madras High Court has backed the ED’s investigation, dismissing petitions filed by the Tamil Nadu government and TASMAC that sought to block the agency’s actions. The court ruled that economic crimes are crimes against the nation, reinforcing the legitimacy of the probe.

TASMAC MD Has a Lot to Explain

S. Visakan, the Managing Director of TASMAC, is the man under the line of major fire. His role in the current ED probe is central due to several key aspects.

As MD, Visakan is ultimately accountable for the financial and operational integrity of TASMAC. He has been subjected to prolonged questioning by ED officials, reportedly for as long as 20 hours over two days, following extensive searches at his office and residence. He was grilled at his Manapakkam residence in Chennai and later at the ED office in Nungambakkam.

This indicates that the ED believes he possesses crucial information regarding the alleged irregularities. His wife was also reportedly questioned.

The ED specifically alleges that Visakan and other senior TASMAC officials were involved in a 'sophisticated scheme' to manipulate tenders, overcharge customers, and receive kickbacks from distilleries. While the exact nature of his alleged involvement is still under investigation, the agency is probing whether he facilitated or benefited from these illegal activities.

Media reports indicate that ED officials recovered printouts of WhatsApp chats near Visakan's residence. These chats allegedly contain details about TASMAC's liquor procurement, legal issues related to floating tenders, and conversations concerning real estate. The presence of such communication could be interpreted as evidence of his direct knowledge or involvement in questionable dealings.

His connection to Udhayanidhi Stalin, as primarily asserted by the opposition, stems from the alleged evidence found during the raids. The chat printouts allegedly show Ratheesh Velu, who is widely considered a close associate and even a childhood friend of Udhayanidhi Stalin, giving direct instructions to Visakan. These instructions allegedly included details on specific liquor brands to purchase, such as 'Erica Platinum XO Brandy French' and 'Erica VSOP Premium XO Brandy', and directives related to tender management.

Furthermore, one particularly notable alleged exchange involved Ratheesh sending Visakan a photo of himself with Udhayanidhi Stalin. The opposition is going to town on this, questioning how a private individual like Ratheesh could wield such influence over a senior government official like the TASMAC MD and implying that Ratheesh was acting on behalf of or with the knowledge of Udhayanidhi.

The AIADMK has even used the social media campaign 'Yaar Antha Thambi (Who is that Brother?)' to demand clarification on Ratheesh's role and his ties to the DMK's 'first family.'

Ratheesh Velu & Akash Baskaran: The Elusive Figure and the Filmdom Connection

Ratheesh Velu, the man on whom a million speculations are out, has reportedly fled the country before the ED could conduct its searches at his residence. The sealing of his MRC Nagar residence by the ED further underscores his elusive status.

This alleged escape has naturally raised suspicions, and every day, many dubious details are emerging about him. Of course, these are still in the realm of conjecture and conspiracy theory. But it looks like he was the primary conduit for laundering unaccounted money linked to TASMAC. His perceived closeness to Udhayanidhi Stalin has drawn the attention of investigative agencies and the opposition alike.

Akash Baskaran, a film producer who heads Dawn Pictures, is also reportedly part of this shady network. His premises were also raided by ED sleuths.

His background is in business, with his father owning a jewellery store in Salem. After completing his education, Akash entered the film industry as an assistant director under filmmaker Vignesh Shivan. It's important to note that Vignesh Shivan, husband of Nayanthara, had notably directed a promotional video for the Chess Olympiad featuring Chief Minister M.K. Stalin.

Akash Baskaran's connections extend directly into the DMK's first family through marriage. In 2024, he married Dharaneeswari, the daughter of C.K. Ranganathan, Chairman and Managing Director of CavinKare. Dharaneeswari's mother, Thenmozhi, is the granddaughter of former Tamil Nadu Chief Minister and DMK patriarch M. Karunanidhi.

This marriage undeniably links Akash to the powerful political lineage of the DMK. His high-profile wedding in 2024 was attended by numerous prominent figures from both the film industry and the DMK, including Stalin and Udhayanidhi Stalin.

Akash Baskaran's Dawn Pictures is a relatively new production house but has rapidly gained attention for financing multiple big-budget films simultaneously, with an estimated combined value between ₹400 and ₹550 crore. He is currently producing high-value projects featuring leading Tamil stars: Idli Kadai starring Dhanush, Parasakthi featuring Sivakarthikeyan, and Silambarasan TR's 49th film.

DMK Pinned to the Backfoot

The ED's investigation is probing whether illegal funds generated from the alleged TASMAC scam were channelled and invested into the movie industry through Dawn Pictures. It also brings the wider Kollywood industry into the periphery of this politically charged investigation, especially given how much the ruling dispensation has a hold over filmdom.

The intertwining of political figures and the film industry in this scandal underscores the complex dynamics at play in Tamil Nadu's socio-political landscape. As the 2026 State elections approach, the revelations from the TASMAC investigation will have significant ramifications for the DMK.

Even though the mainstream media is choosing to play down the scandal, prominent social media handles have picked up on the hot-potato political issue.

Opposition leaders have also seized upon the scandal, calling for accountability and transparency. The unfolding events highlight the need for a thorough examination of the relationships between political entities and other influential sectors within the State.

On social media platforms, all kinds of rumours are floating around, and big names from the DMK may be quizzed by the ED. There are political handles that claim someone from the first family will be sent to prison in the case. Those are heightened speculations as of now. But make no mistake about it—things are getting complex and decisive.

Corruption allegations have historically played a decisive role in Tamil Nadu politics. The Delhi liquor scam led to electoral setbacks for the AAP, and similar trends could emerge here. The AIADMK and the BJP are using the scandal to up their spirits ahead of the elections.

It is no exaggeration to say that the TASMAC scam has become more than just a financial scandal. As opposition parties sharpen their attacks and the DMK finds itself navigating a crisis, this could reshape the State’s electoral dynamics.

Stalin's Delhi visit can hardly salvage the situation. Or so it looks as of now.