📝Vijay's Big Crackdown On 'Party Fund' System
The crackdown aims to ensure all revenue from liquor sales reaches the State treasury, addressing significant alleged diversions.
Vijay was informed that nearly Rs 102 crore was allegedly diverted monthly via unofficial 'party fund' collections.
This article was reported by Vasudha Venugopal, India News, and published on Jun 07, 2026.
CM Joseph Vijay launched a crackdown in his first Cabinet meeting after assuming office on Friday.
Officials were ordered to ensure every rupee generated through liquor sales reaches the State treasury.
Nearly Rs 102 crore was allegedly diverted every month through unofficial 'party fund' collections.
Government estimates suggest nearly Rs 1,600 crore may have been siphoned from the State exchequer over five years.
The crackdown brings spotlight and scrutiny on the DMK's alleged use of TASMAC, according to sources.
The Chief Minister directed officials to immediately dismantle long-running unofficial cash collection systems.
There are nearly 4,048 registered TASMAC outlets.
Minister for Prohibition and Excise K Vignesh is overseeing the reforms.
K Vignesh is a 37-year-old first-time minister from a modest background.
Minister K Vignesh stated the CM's government does not need revenue generated through corruption or suffering.
The CM's instruction was simple: arrest leakages immediately and bring people's money back to the treasury.
Prohibition officials and distilleries have been informed that the government intends to scrap all informal collection systems.
This marks the beginning of a major administrative overhaul of TASMAC operations, from procurement to retail sales.
Minister Vignesh said the government is working on a 'foolproof transparency mechanism' for liquor sales revenue.
Unofficial collections allegedly became institutionalised within the TASMAC supply chain over nearly two decades.
Unofficial collections had allegedly become institutionalised within the TASMAC supply chain over nearly two decades.
Liquor in Tamil Nadu is supplied through standardised cases depending on bottle size.
180 ml bottles are packed in cases of 48.
375 ml bottles come in cases of 24.
750 ml bottles are packed in cases of 12.
Beer cases generally contain 12 bottles.
Different liquor case types allegedly had varying amounts diverted as 'party fund' collections.
| Case Type | Alleged Diversion Amount |
|---|---|
| Liquor case | Rs 90 per case |
| Beer case | Rs 40 per case |
| Wine case | Rs 20 per case |
Officials claimed these collections operated across warehouses, transport, and retail outlets.
Nearly 88 lakh consumers buy liquor through TASMAC every month.
Internal estimates showed at least Rs 102 crore every month was allegedly moving into unofficial channels.
The TASMAC crackdown is only the beginning of a wider anti-corruption and revenue-monitoring exercise.
The Chief Minister asked officials to identify leakages in every department and ensure government revenues are fully accounted for.
TASMAC was taken up first because of the scale of unofficial collections.
The mining department could be the next major sector to face scrutiny.
The government is reviewing the controversial Rs 10 empty-bottle deposit-and-buyback system at TASMAC outlets.
The government is reviewing the Rs 10 empty-bottle deposit-and-buyback system at TASMAC outlets.
Customers pay an additional Rs 10 deposit for every bottle, refundable when the empty bottle is returned.
Officials believe the system created significant scope for unaccounted cash transactions.
Nearly one crore liquor bottles are sold every month in Tamil Nadu.
Only around 60,000 bottles came back into the system for every one lakh sold.
Unaccounted deposits from unreturned bottles caused a major portion of the corruption.
Irregularities linked to bottle return collections may have resulted in corruption worth nearly Rs 300 crore every month.
The government is examining proposals to integrate the Rs 10 deposit into MRP or introduce a digitised refund mechanism.
Government decided to operationalise the empty bottle collection and buy-back system through outsourced agencies by end of June.
The TASMAC overhaul is closely tied to the TVK government's broader anti-addiction agenda, including shop closures.
The TASMAC overhaul is closely tied to the Tamilaga Vettri Kazhagam (TVK) government's broader anti-addiction agenda.
One of Vijay's first decisions after taking office was ordering the closure of 717 TASMAC retail shops.
Shutting these shops could reduce annual liquor revenue by nearly Rs 8,000 crore.
Despite projected loss, the government ruled out increasing liquor prices to compensate.
A senior official stated the CM made clear TASMAC cannot become a system for exploitation.
Illegal collections and overcharging will not be tolerated.
Vijay emphasized during the Cabinet meeting that liquor sales could not be viewed purely as a revenue-generation exercise.
An official stated the CM's message: every rupee earned must go to the people through the treasury.
Revenue should go to the treasury, not into unofficial systems.
The crackdown aims to ensure all revenue from liquor sales reaches the State treasury, addressing significant alleged diversions.
Vijay was informed that nearly Rs 102 crore was allegedly diverted monthly via unofficial 'party fund' collections.
This article was reported by Vasudha Venugopal, India News, and published on Jun 07, 2026.
CM Joseph Vijay launched a crackdown in his first Cabinet meeting after assuming office on Friday.
Officials were ordered to ensure every rupee generated through liquor sales reaches the State treasury.
Nearly Rs 102 crore was allegedly diverted every month through unofficial 'party fund' collections.
Government estimates suggest nearly Rs 1,600 crore may have been siphoned from the State exchequer over five years.
The crackdown brings spotlight and scrutiny on the DMK's alleged use of TASMAC, according to sources.
The Chief Minister directed officials to immediately dismantle long-running unofficial cash collection systems.
There are nearly 4,048 registered TASMAC outlets.
Minister for Prohibition and Excise K Vignesh is overseeing the reforms.
K Vignesh is a 37-year-old first-time minister from a modest background.
Minister K Vignesh stated the CM's government does not need revenue generated through corruption or suffering.
The CM's instruction was simple: arrest leakages immediately and bring people's money back to the treasury.
Prohibition officials and distilleries have been informed that the government intends to scrap all informal collection systems.
This marks the beginning of a major administrative overhaul of TASMAC operations, from procurement to retail sales.
Minister Vignesh said the government is working on a 'foolproof transparency mechanism' for liquor sales revenue.
Unofficial collections allegedly became institutionalised within the TASMAC supply chain over nearly two decades.
Unofficial collections had allegedly become institutionalised within the TASMAC supply chain over nearly two decades.
Liquor in Tamil Nadu is supplied through standardised cases depending on bottle size.
180 ml bottles are packed in cases of 48.
375 ml bottles come in cases of 24.
750 ml bottles are packed in cases of 12.
Beer cases generally contain 12 bottles.
Different liquor case types allegedly had varying amounts diverted as 'party fund' collections.
| Case Type | Alleged Diversion Amount |
|---|---|
| Liquor case | Rs 90 per case |
| Beer case | Rs 40 per case |
| Wine case | Rs 20 per case |
Officials claimed these collections operated across warehouses, transport, and retail outlets.
Nearly 88 lakh consumers buy liquor through TASMAC every month.
Internal estimates showed at least Rs 102 crore every month was allegedly moving into unofficial channels.
The TASMAC crackdown is only the beginning of a wider anti-corruption and revenue-monitoring exercise.
The Chief Minister asked officials to identify leakages in every department and ensure government revenues are fully accounted for.
TASMAC was taken up first because of the scale of unofficial collections.
The mining department could be the next major sector to face scrutiny.
The government is reviewing the controversial Rs 10 empty-bottle deposit-and-buyback system at TASMAC outlets.
The government is reviewing the Rs 10 empty-bottle deposit-and-buyback system at TASMAC outlets.
Customers pay an additional Rs 10 deposit for every bottle, refundable when the empty bottle is returned.
Officials believe the system created significant scope for unaccounted cash transactions.
Nearly one crore liquor bottles are sold every month in Tamil Nadu.
Only around 60,000 bottles came back into the system for every one lakh sold.
Unaccounted deposits from unreturned bottles caused a major portion of the corruption.
Irregularities linked to bottle return collections may have resulted in corruption worth nearly Rs 300 crore every month.
The government is examining proposals to integrate the Rs 10 deposit into MRP or introduce a digitised refund mechanism.
Government decided to operationalise the empty bottle collection and buy-back system through outsourced agencies by end of June.
The TASMAC overhaul is closely tied to the TVK government's broader anti-addiction agenda, including shop closures.
The TASMAC overhaul is closely tied to the Tamilaga Vettri Kazhagam (TVK) government's broader anti-addiction agenda.
One of Vijay's first decisions after taking office was ordering the closure of 717 TASMAC retail shops.
Shutting these shops could reduce annual liquor revenue by nearly Rs 8,000 crore.
Despite projected loss, the government ruled out increasing liquor prices to compensate.
A senior official stated the CM made clear TASMAC cannot become a system for exploitation.
Illegal collections and overcharging will not be tolerated.
Vijay emphasized during the Cabinet meeting that liquor sales could not be viewed purely as a revenue-generation exercise.
An official stated the CM's message: every rupee earned must go to the people through the treasury.
Revenue should go to the treasury, not into unofficial systems.