BJP Alleges ₹1,000-Crore Liquor Scam by DMK Government, Claims MK Stalin’s Diversion Tactics

The Bharatiya Janata Party (BJP) has leveled accusations against the Dravida Munnetra Kazhagam (DMK) government in Tamil Nadu, led by Chief Minister MK Stalin, for disseminating ‘false’ information regarding the three-language policy and delimitation. The BJP claims this is an attempt to shift attention away from the Enforcement Directorate (ED) operations targeting the Tamil Nadu State Marketing Corporation Limited (TASMAC) and companies involved in liquor supply.

The allegations emerged on a day when the DMK government presented its budget in the state Assembly, with Finance Minister Thangam Thenarasu announcing fund allocations for welfare initiatives, including complimentary bus travel for women. The budget session faced disruptions from opposition parties, with the AIADMK and the BJP performing a walkout in response to alleged corruption.

“The Tamil Nadu government is perpetuating unfounded claims about the three-language policy, NEP, delimitation, and the removal of the ₹ symbol from the budget document to distract the populace from the current ED investigations into TASMAC, the Liquor Minister, and liquor-supplying companies in Tamil Nadu,” stated Amit Malviya, who oversees the BJP’s National Information and Technology Department, in a post on X.

The Stalin administration incited political controversy on Thursday by substituting the Devanagari rupee symbol ‘ ₹’ with a Tamil character in its budget logo for 2025-26. Union Finance Minister Nirmala Sitharaman criticized the decision and questioned the DMK’s lack of protest in 2010 when the Congress officially recognized the symbol.

This development occurs amid a highly charged political climate in the state relating to two contentious subjects: the three-language issue and delimitation.

“The ED has discovered documents from distilleries that reveal unaccounted cash flow amounting to ₹1,000 crores being funneled as kickbacks. The DMK has been exploiting the common populace to fill its party coffers through system manipulation, and MK Stalin must provide a rationale to the public concerning who received these bribes. Given the current scenario and the extensive corruption under his management, it becomes increasingly untenable for him to sustain his position as Chief Minister of Tamil Nadu,” Malviya asserted in his post.

On Friday, E Palaniswami insisted that the DMK administration should accept moral responsibility for the alleged corruption and step down. The AIADMK and the BJP have amplified their calls for clarification from the state government regarding the ED’s findings.

BJP MLA Vanathi Srinivasan mentioned that she has contacted the Tamil Nadu Assembly speaker to urge the state government to address the alleged scandal.

“The ED’s inquiry into TASMAC has highlighted unrecorded cash transactions totaling ₹1,000 crores, unveiling manipulated tenders and significant financial irregularities. I have written to the Hon’ble Speaker of the Tamil Nadu Assembly, urging the state government to respond under Rule 55,” she stated on X.

Response from Excise Minister Senthil Balaji

However, Tamil Nadu Excise Minister Senthil Balaji refuted the claims, asserting there is no basis for such allegations and no scope for malpractice in the TASMAC tender.

“In the name of investigations, the ED has conducted searches but failed to mention the year the FIR was registered. They have theatrically portrayed it as if mistakes have occurred in TASMAC recruitment. For the past four years, the bar tender has been solely online. Without any foundation, they have accused us of ₹1,000 crores in corruption. There is absolutely no opportunity for malpractice in the TASMAC tender,” Balaji emphasized.

On March 6, the ED conducted search operations at multiple locations across various districts of Tamil Nadu under the provisions of PMLA, 2002, concerning offenses related to TASMAC and its associated entities/persons.

Is this another liquor scandal?

It’s worth remembering that in the national capital, several high-ranking leaders from the Aam Aadmi Party (AAP), including the former Chief Minister of Delhi, were imprisoned for their alleged involvement in what has become known as the Delhi Liquor Scam. This controversy unfolded following the implementation of a new excise policy from 2021 to 2022. Ultimately, in the elections of 2025, the AAP was defeated by the BJP.

A report from the Comptroller and Auditor General (CAG) titled ‘Performance Audit on Regulation and Supply of Liquor in Delhi’ tabled in the Delhi Assembly last month underscored the shortcomings in the now-abandoned Delhi excise policy, which resulted in an estimated loss of ₹2,002 crores to the Delhi government.

The Assembly elections in Tamil Nadu are slated for next year.