Tamil Nadu Liquor Scam Sparks Political Firestorm

Political controversies over corruption allegations have once again taken center stage in Indian politics, this time in Tamil Nadu. The ruling Dravida Munnetra Kazhagam (DMK) government, led by Chief Minister MK Stalin, is now embroiled in a massive liquor scam controversy, with the Enforcement Directorate (ED) conducting raids in connection with alleged irregularities in the Tamil Nadu State Marketing Corporation (TASMAC). This development closely follows the recent downfall of the Aam Aadmi Party (AAP) in Delhi, where liquor policy-related corruption allegations contributed to its electoral defeat.

The Bharatiya Janata Party (BJP), which has been at the forefront of exposing alleged corruption in opposition-ruled states, has seized the moment to attack the DMK government. With the 2026 Tamil Nadu assembly elections approaching, the allegations are being used as a political weapon to generate anti-incumbency sentiment against the ruling party.

The Allegations and the ED Raids

On March 13, 2025, the ED conducted multiple searches across Tamil Nadu targeting TASMAC and liquor supply firms. According to sources, the investigation has uncovered evidence of unaccounted cash transactions amounting to nearly Rs 1,000 crore, allegedly generated through manipulated tenders and illicit commissions. The scam reportedly involves distillery companies such as SNJ, Kals, Accord, SAIFL, and Shiva Distillery, along with bottling firms like Devi Bottles and Crystal Bottles.

Evidence suggests that these distilleries inflated expenses, engaged in bogus purchases, and routed unaccounted funds through bottle-making companies. The kickbacks were allegedly used to secure favourable supply orders from TASMAC, creating a deep nexus between the liquor industry and political powerbrokers.

BJP’s Political Offensive

The BJP has been quick to capitalize on the unfolding scandal, positioning itself as the anti-corruption crusader against the DMK government. Amit Malviya, head of BJP's IT Cell, accused MK Stalin of diverting public attention from the scam by raking up issues like the three-language policy, delimitation, and even replacing the Devanagari rupee symbol with a Tamil letter in the state’s budget logo.

“The ED has uncovered massive financial irregularities in TASMAC, exposing how the DMK has exploited common people to fill its coffers. Stalin owes the people of Tamil Nadu an explanation regarding who received the Rs 1,000 crore kickbacks. Given the extent of corruption under his leadership, it is becoming increasingly untenable for him to continue as Chief Minister,” Malviya stated in a post on X.

BJP MLA Vanathi Srinivasan has urged the Tamil Nadu Assembly Speaker to compel the DMK government to address the issue. “ED’s investigation has uncovered unaccounted transactions and manipulated tenders. The state government must answer under Rule 55,” she posted on social media.

Opposition Mounts Pressure on DMK

The AIADMK, the primary opposition party in Tamil Nadu, has also intensified its attack on the DMK government. Leader of Opposition E. Palaniswami demanded Stalin’s resignation, stating that the ruling party must take moral responsibility for the scandal. AIADMK leaders, along with BJP legislators, staged a walkout from the Tamil Nadu Assembly in protest during the budget session.

The timing of the allegations is crucial, as the state government had just presented its 2025-26 budget, which included key welfare schemes such as fare-free bus travel for women. By shifting the narrative towards corruption, opposition parties are aiming to weaken public confidence in the ruling party’s governance.

Stalin Government’s Denial

Tamil Nadu Excise Minister Senthil Balaji has categorically denied the allegations, dismissing them as baseless and politically motivated. “The ED’s searches have not indicated any wrongdoing on our part. The TASMAC tendering process has been conducted transparently for the last four years, and there is no room for malpractice,” he asserted.

Balaji further questioned the legitimacy of the ED’s probe, stating, “They have created a scene as if major frauds have occurred in TASMAC recruitment. The truth is, the process has been fully digitized, eliminating any scope for corruption.”

A Repeat of the Delhi Liquor Scam?

The parallels between the Tamil Nadu liquor scam and the Delhi liquor policy controversy are striking. In the national capital, senior AAP leaders, including former Chief Minister Arvind Kejriwal, faced arrest over their alleged involvement in a similar excise policy scam. The scandal, which emerged in 2021-22, became a major electoral setback for AAP, leading to its loss in the 2025 Delhi elections to the BJP.

Given this precedent, the BJP sees an opportunity to use corruption allegations as a strategic tool to turn public opinion against the DMK. The ongoing ED probe into TASMAC could potentially impact the DMK’s electoral prospects if the opposition manages to sustain the narrative.

The Broader Political Implications

The unfolding liquor scam controversy highlights a larger pattern in Indian politics, where allegations of corruption are frequently leveraged to create anti-incumbency sentiments. The opposition’s primary goal is to erode the ruling party’s credibility and consolidate voter discontent ahead of elections.

While the BJP is pushing for a high-decibel campaign against the DMK, it remains to be seen whether these allegations will translate into electoral gains. With the 2026 Tamil Nadu assembly elections on the horizon, the DMK will have to mount a robust defense to prevent the controversy from snowballing into a major political crisis.

As the investigation continues, the political battlelines are drawn, and Tamil Nadu’s political landscape is set for a heated confrontation in the months to come.