₹1,600cr 'party fund' collected over 5yrs in liquor sales: Vijay
What's the story
In his first Cabinet meeting as Tamil Nadu Chief Minister, Joseph Vijay has ordered a major crackdown on alleged leakages and unofficial collections linked to the Tamil Nadu State Marketing Corporation (TASMAC). According to NDTV, senior government sources said that nearly ₹102 crore was allegedly being diverted every month through unofficial "party fund" collections within TASMAC operations. Over the past five years, this could amount to around ₹1,600 crore being siphoned from the state exchequer.
System overhaul
Chief minister does not need revenue generated through corruption
Vijay has reportedly directed officials to dismantle long-standing unofficial cash collection systems across TASMAC's wholesale and retail network. The reforms are being overseen by Minister for Prohibition and Excise K Vignesh, a first-time minister from a humble background. He said, "The Chief Minister made it clear in the Cabinet meeting that his government does not need revenue generated through corruption or through the suffering of people."
Transparency initiative
Unofficial collections had become institutionalized within TASMAC
Vignesh said the government is working on a "foolproof transparency mechanism" to ensure all revenue from liquor sales reaches the state exchequer. Unofficial collections had allegedly become institutionalized within TASMAC over nearly two decades, with officials estimating that around ₹90 per case was diverted as "party fund" collections. Nearly 88 lakh consumers buy liquor through TASMAC every month, leading to an estimated diversion of at least ₹102 crore monthly into unofficial channels.
Sector review
First step in larger anti-corruption exercise by new government
The TASMAC crackdown is just the first step in a larger anti-corruption and revenue-monitoring exercise by the new government. Officials said Vijay has asked them to identify leakages in every department, with TASMAC being the first due to its scale of unofficial collections. The mining department could be next as the government expands its review of alleged revenue leakages across sectors.
System review
Government reviewing controversial empty-bottle deposit-and-buyback system at TASMAC outlets
The government is also reviewing the controversial ₹10 empty-bottle deposit-and-buyback system at TASMAC outlets. Officials believe this system allowed for unaccounted cash transactions, with estimates suggesting corruption worth nearly ₹300 crore monthly. The government is now considering proposals to integrate the ₹10 deposit into the Maximum Retail Price (MRP) or introduce a digitized refund mechanism.
Shop closures
Vijay's government has closed 717 TASMAC retail shops
Vijay's government has also closed 717 TASMAC retail shops across Tamil Nadu as part of its anti-addiction agenda. This decision could reduce annual liquor revenue by nearly ₹8,000 crore, but the government has ruled out increasing prices to compensate. Officials said Vijay emphasized during the Cabinet meeting that liquor sales shouldn't be viewed purely as a revenue-generating exercise and stressed that every rupee earned must go to the people through the treasury.