Bottle firms colluded with distilleries in Rs 1,000 crore Tasmac scam: ED
"The findings confirm a network where unaccounted cash was deliberately generated through inflated and bogus expenses and subsequently utilised for purposes leading to huge profits," ED said.
Enforcement Directorate
CHENNAI: The Directorate of Enforcement’s week-long investigations into irregularities in TASMAC have revealed that distilleries systematically inflated expenses and fabricated bogus purchases, mainly through bottle-making companies, to siphon off over Rs 1,000 crores in unaccounted cash, and these funds were then used for kickbacks to secure higher supply orders from TASMAC.
"EC searches revealed large-scale financial fraud involving distillery companies SNJ, Kals, Accord, SAIFL, and Shiva Distillery along with bottling entities such as Devi Bottles, Crystal Bottles, and GLR Holding, exposing a well-orchestrated scheme of unaccounted cash generation and illicit payments," ED said in an official statement.
According to ED, the bottling companies played a critical role in this fraudulent scheme by inflating sales figures, allowing distilleries to route excess payments, which were later withdrawn in cash and returned after deducting commissions. The collusion between distilleries and bottling companies was done through the manipulation of financial records, concealed cash flows, and systematic evasion.
"The findings confirm a network where unaccounted cash was deliberately generated through inflated and bogus expenses and subsequently utilised for purposes leading to huge profits," ED said.
The probe also revealed incriminating data related to transfer postings, transport tender, bar licence tender, indent orders favouring few distillery companies, and excess charges of Rs 10-30 per bottle by TASMAC outlets.
The ED had initiated investigations on the basis of multiple FIRs registered under the Prevention of Corruption Act by the Tamil Nadu Police's anti-corruption unit, which probed a range of issues in TASMAC.
The ED also found evidence of manipulation in TASMAC's transport tender allocations. A glaring mismatch between the KYC details of the applicant and the Demand Draft (DD) suggest the final successful bidder did not even obtain the requisite DD before the application deadline.
"Additionally, tenders were awarded despite having only a single applicant in the final bid. TASMAC paid over Rs 100 crore annually to transporters," ED said.
It also found manipulation of tender conditions in allocation of bar licence tenders. A case in point is that applicants without any GST/PAN numbers and without proper KYC documentation were allotted the final tenders, according to ED.
"Evidence reveal direct communication between distillery companies and higher TASMAC officials, exposing efforts to secure increased indent orders and undue favours," ED said
