ED to inform SC about illegal cash, tampering of software in TASMAC case

New Delhi, May 23 (PTI) The Enforcement Directorate identified some prime suspects moving alleged kickbacks in cash and tampering with TASMAC's indenting system in Tamil Nadu just before the Supreme Court stayed its money laundering probe and observed that the central agency was "crossing all limits" and violating the federal concept of governance.

Official sources said the agency was about to record the statement of some important players in this money laundering case after it unearthed some "incriminating" WhatsApp chats between a top official of TASMAC and a "power broker" who is the prime suspect in the case.

They said the alleged kickbacks generated in cash in this case were being "invested" into other businesses like real estate and the agency has sourced government and financial documents that will be placed before the SC during the next hearing.

The apex court on Thursday stayed the ED investigation into alleged financial irregularities in the Tamil Nadu State Marketing Corporation Limited (TASMAC) and issued a notice to the agency.

TASMAC is "wholly owned" by the Tamil Nadu government and has its registered office in Chennai. It is vested with the exclusive rights for wholesale supply of Indian Made Foreign Liquor (IMFL) and beer in the state with 43 depots and nearly 5,000 retail units spread across the state.

The federal probe agency had conducted the first set of raids in this case in March.

The sources said the ED will brief the Supreme Court about the "vital evidences" collected by it during searches in the case apart from the recorded statements of some TASMAC officials and other liquor agents that point to "deep-rooted manipulation, financial fraud, and politically-linked benami operations" worth at least Rs 1,000 crore till now.

The sources claimed the agency has found that the sale of some select liquor was being "inflated" by "tampering" with the indenting system in TASMAC.

They said that the Oracle system in TASMAC is programmed to generate indents based on stock transfers and depot data. Depot managers were allegedly short-supplying brands in demand and instead pushing alternative brands, thereby "skewing" indent data and favouring specific distilleries.

In a press statement issued earlier, the ED alleged irregularities in the operations of TASMAC, including "manipulation" in the tender processes and "unaccounted" cash transactions of Rs 1,000 crore through distillery companies.

The sources said "manipulations" have been found in grant of bar licences in the state with the collusion of some politically linked persons and the Supreme Court would be informed about this in the next hearing.

They claimed that bar licences were granted using "fraudulently" sourced demand drafts (DDs) from "unrelated" individuals, while the bars were being operated by "benamis".

The agency had issued summons to a number of license holders but they were found untraceable, which potentially indicates "fake" identities and deliberate evasion, they said.

The sources said the ED has detected alleged irregularities in the case of issuance of transport tenders too by "blatant misuse" of DDs.

In one case, an applicant submitted 16 DDs but received only one tender. He never received his unused DDs and these, the sources said, were "illegally" handed over by TASMAC officials to other bidders who were then awarded the tenders.

A good amount of cash is allegedly being generated by distilleries by making "bogus" purchases, mostly through bottle supplying companies, purchasing raw materials and this alleged illegal modus operandi will also be informed to the SC during the next hearing, the sources said.

Tamil Nadu's ruling DMK had welcomed the SC order staying the ED probe, saying it is a "big blow" to alleged efforts by the BJP to malign the party-led government in the state and that the federal probe agency was a "blackmailing organisation". PTI NES DIV DIV

Source: PTI