Tamil Nadu’s newly formed TVK government, led by Chief Minister Joseph Vijay, has claimed to have busted a massive liquor syndicate allegedly involved in illegal collections worth around ₹3,600 crore under the guise of “party funds.” The government has ordered an immediate end to the unofficial cash collection system reportedly operating within the state’s liquor distribution network. According to preliminary findings cited by the government, illegal charges were being levied on liquor sales, including ₹90 per case of liquor, ₹40 per beer carton, and ₹20 per wine carton.
Officials estimate that these practices resulted in monthly irregularities of over ₹100 crore, impacting state revenue. The Chief Minister has directed that all proceeds from liquor sales must now go directly into the state exchequer with full transparency. The Tamil Nadu State Marketing Corporation (TASMAC), which holds a monopoly over liquor retail and wholesale in the state, is now under a major administrative overhaul. The government has appointed senior IAS officer Pooja Kulkarni as the new excise commissioner to restructure and clean up the system. The Chief Minister has also warned of strict action against anyone found involved in corruption or illegal collections.
In a parallel move, the government has shut down 717 liquor outlets operating in violation of regulations, including those located near schools, religious places, and transport hubs. While officials estimate a revenue loss of around ₹8,000 crore annually due to these closures, the government has stated that no new shops will be opened and liquor prices will not be increased to compensate. Additionally, stricter enforcement measures have been introduced, including mandatory biometric and ID checks for alcohol purchases and a minimum legal drinking age of 21 years. The administration has clarified that TASMAC will remain state-controlled, with no plans for privatization, as reforms continue across the liquor distribution system.
