The Tamil Nadu government, led by Chief Minister C. Joseph Vijay has initiated a sweeping overhaul of the state’s liquor retail system, TASMAC. The efforts include the closure of outlets and an aggressive anti-corruption drive to eliminate alleged revenue leakages and illegal collections. According to reports, 717 TASMAC outlets have been permanently closed across Tamil Nadu on June 5. The administration has also launched a financial crackdown after identifying what it described as substantial leakages through informal “party fund” collections. According to the government, nearly Rs 102 crore was being diverted every month, resulting in an estimated loss of around Rs 1,600 crore over the past five years.
Chief Minister Vijay has directed that all revenues generated through liquor sales must be routed transparently into the state treasury.
Why is Vijay Govt Cracking Down Against TASMAC Stores
Speaking to the media, Prohibition and Excise Minister K. Vignesh said the government had dismantled what he described as a “massive corruption network operating within Tasmac.”
According to the minister, commissions were routinely collected during the procurement process for years. He alleged that approximately Rs 90 was siphoned off from every liquor case, Rs 40 from every beer carton, and Rs 20 from every wine carton, resulting in losses amounting to thousands of crores annually.
Vignesh stated that nearly 88 lakh liquor cases are procured every year and claimed that the diverted commissions ultimately benefited individuals with political connections.
“Chief Minister Vijay has broken this syndicate, and strict action will be taken against anyone found guilty of corruption,” he said.
Rotten TASMAC Supply Chain
According to Excise Department sources, unofficial collections had allegedly become institutionalised within the TASMAC supply chain over nearly two decades.
Officials explained that liquor is supplied in standardised case formats across Tamil Nadu:
180 ml bottles are packed in cases of 48
375 ml bottles are packed in cases of 24
750 ml bottles are packed in cases of 12
Beer cases generally contain 12 bottles
“For every liquor case, around Rs 90 per case was allegedly diverted as ‘party fund’ collections. In beer cases, around Rs 40 per case was collected, while wine cases allegedly contributed Rs 20 per case towards ministerial or political funds,” NDTV quoted a senior official.
Government Flags Overcharging in Retail Sales
The minister also highlighted alleged irregularities in liquor sales at retail outlets.
According to Vignesh, although the Rs 10 bottle deposit system was formally introduced only last year, customers had allegedly been charged excess amounts for four years before that.
He pointed to sales figures from 2021-22, stating that approximately one crore liquor bottles were sold every day through TASMAC outlets. Based on those volumes, at least Rs 10 crore was allegedly collected in excess daily.
The figures translate to:
Rs 10 crore in excess collections per day
Rs 300 crore per month
Rs 3,600 crore annually
Will Vijay Govt Privatise TASMAC?
Addressing speculation surrounding the future of the liquor retail network, Vignesh clarified that the government has no intention of privatising TASMAC operations.
Instead, he said reforms would focus on improving transparency, strengthening accountability mechanisms, and advancing the government’s broader goal of creating a drug-free Tamil Nadu.
The Tamil Nadu government has acknowledged that the closure of 717 outlets is expected to reduce annual liquor revenue by nearly Rs 8,000 crore.
Opposition parties have criticised the initiative, arguing that the closures are financially reckless given TASMAC’s contribution to state revenues.
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Zubair Amin is a Senior Journalist at NewsX with over seven years of experience in reporting and editorial work. He has written for leading national and international publications, including Foreign Policy Magazine, Al Jazeera, The Economic Times, The Indian Express, The Wire, Article 14, Mongabay, News9, among others. His primary focus is on international affairs, with a strong interest in US politics and policy. He also writes on West Asia, Indian polity, and constitutional issues. Zubair tweets at zubaiyr.amin
