'Every rupee must reach treasury': Vijay targets liquor shop revenue diversions

According to NDTV's government sources, the Chief Minister was briefed on allegations that nearly ₹102 crore was being diverted every month through informal collections embedded within TASMAC's operations.

Internal estimates reportedly suggest that nearly ₹1,600 crore may have been siphoned away from the exchequer over the past five years.

According to sources, the move has also renewed scrutiny over allegations regarding the use of TASMAC-linked funds during the previous administration.

'Stop leakages immediately'

The Chief Minister reportedly instructed officials to dismantle long-running unofficial cash collection systems operating across TASMAC's wholesale and retail network, which comprises around 4,048 registered outlets across the state.

"The Chief Minister made it clear in the Cabinet meeting that his government does not need revenue generated through corruption or through the suffering of people. His instruction was simple — arrest leakages immediately and bring back people's money to the treasury," Minister K Vignesh told NDTV.

Officials and distilleries have reportedly been informed that the government intends to eliminate all informal collection mechanisms associated with TASMAC operations.

Major administrative reforms planned

As per NDTV's sources said the exercise marks the beginning of a comprehensive administrative overhaul covering liquor procurement, warehouse dispatch, transportation, retail sales, bottle returns and shop-level collections.

Minister Vignesh said the government is working on a "foolproof transparency mechanism" to ensure that all liquor-sale revenue is directly accounted for by the state.

The reforms are being overseen by the 37-year-old first-time minister, who now heads the Prohibition and Excise Department.

Alleged 'party fund' collections under scanner

Excise Department sources told NDTV that unofficial collections had become institutionalised across the TASMAC supply chain over nearly two decades.

Officials alleged that around ₹90 was collected per liquor case as a "party fund", while beer cases reportedly attracted collections of around ₹40 per case and wine consignments around ₹20 per case.

The collections were allegedly spread across warehouses, transportation channels and retail outlets.

Empty bottle deposit system faces review

The government is also examining the controversial ₹10 bottle-deposit and buy-back mechanism currently followed at TASMAC outlets.

Under the existing system, customers pay an additional ₹10 deposit for every liquor bottle purchased, which is refundable upon returning the empty bottle.

Officials believe the arrangement has created opportunities for unaccounted cash transactions.

According to media reports, nearly one crore liquor bottles are sold every month in Tamil Nadu.

Officials claim that only a fraction of the bottles are formally returned through the system, leaving substantial amounts of deposit money unaccounted for.

The government is examining options such as integrating the deposit amount into the Maximum Retail Price (MRP) or introducing a digitised refund mechanism.

Vignesh confirmed that the empty-bottle collection and buy-back process would be outsourced and operationalised before the end of June.

717 TASMAC shops already closed

The TASMAC reforms are closely tied to the broader anti-addiction agenda of the ruling Tamilaga Vettri Kazhagam (TVK) government.

One of the new administration's earliest decisions was the closure of 717 TASMAC retail outlets across the State. Departmental estimates suggest the move could reduce annual liquor revenue by nearly ₹8,000 crore.

Despite the projected loss, the government has ruled out increasing liquor prices to offset the revenue impact.

"The Chief Minister has clearly stated that TASMAC cannot become a system for exploitation. Illegal collections and overcharging will not be tolerated," a senior official said.

Mining sector may be next

According to reports, the government's anti-corruption and revenue-monitoring drive could soon expand beyond TASMAC.

According to media reports, the mining department is likely to be among the next sectors reviewed as the administration seeks to identify alleged revenue leakages and unofficial cash flows across government departments.

Officials said the Chief Minister repeatedly stressed during the Cabinet meeting that liquor sales could not be treated solely as a source of government income.