Chennai:
Tamil Nadu Excise Minister V Senthil Balaji on Friday afternoon strongly denied the Enforcement Directorate’s claims of “irregularities” in tender processes, and a possible fraud of Rs 1,000 crore, within the Tamil Nadu State Marketing Corporation or TASMAC, the state-run liquor sales agency.
Mr Balaji told said the ED – which opposition leaders claim is used by the centre to target rival parties and leaders, particularly before an election, which Tamil Nadu will hold next year – had also been released because of the DMK vs BJP battle over ‘Hindi imposition‘ and delimitation.
“ED has given no details of the FIRs on basis of which it has acted. There is no corruption in transfer or transportation (of cash) … the alleged irregularities are by bottling firms outside TASMAC… Tamil Nadu government has no role in this,” Mr Balaji told reporters.
“The ED is motivated… it released its statement to defame the Tamil Nadu government ahead of the budget speech. This Rs 1,000 crore corruption allegation is baseless,” he said firmly.
On Thursday the ED said it had evidence of manipulation” in tenders floated by TASMAC, as well as “unaccounted” cash transactions worth Rs 1,000 crore through distillery companies.
This, it said, emerged after raids last week on the corporate offices of these distilleries and its employees, as also TASMAC and government offices, including those of “key associates” linked to Mr Balaji. These raids yielded “incriminating” data about bar licence tenders, orders favouring some distilleries, and excess charges – Rs 10 to Rs 30 per bottle – at sales points, the ED said.
READ | Probe Agency Reveals Rs 1,000 Crore Irregularities In TASMAC
The data also shows, the ED has claimed, that some distilleries “systematically inflated” expenses and “fabricated” bogus purchases to siphon Rs 1,000 crore in “unaccounted” cash.
But Mr Balaji said the tenders had been executed online and that end-to-end procurements had been made for 24 districts. “We will complete in the remaining districts soon,” he said
“Procurement (of alcohol from distilleries to stock TASMAC stores) was done based on an average of sales from the last three months. There was no concession to any distillery.”
The ED’s claims have triggered a political row in poll-bound Tamil Nadu, with the main opposition party, the AIADMK, and the BJP both walking out of the Assembly today during the budget speech.
READ | “Eye-Wash”: AIADMK Walks Out Of TN Budget, BJPs 4 MLAs Follow
AIADMK boss E Palaniswami later told reporters the alleged TASMAC scam could be worth as much as Rs 40,000 crore, and demanded Chief Minister MK Stalin and his government resign.
“The government didn’t take any action even after the ED raid. We demand the DMK government should resign over this… ED has said there is corruption of more than Rs 1,000 crore. But it is possible there is actually corruption of more than Rs 40,000 crore. The investigation is ongoing.”
The BJP has also attacked the DMK on this issue, though it seems to be reserving its criticism for the ‘Hindi imposition’ and the delimitation rows.
Meanwhile, Mr Balaji also said his legal team would respond to questions about his surprise reinstatement in September last year, days after the Supreme Court granted bail in a corruption case. A puzzled court later asked, “What is going on? We grant bail and the next day you become a minister….”
With input from agencies
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