With just a year left for the high-stakes 2026 Tamil Nadu Assembly elections, the ruling Dravida Munnetra Kazhagam (DMK) finds itself navigating a mounting political storm. The Enforcement Directorate’s (ED) intensifying probe into the Rs 1,000 crore TASMAC liquor scam is shaping up to be a major challenge for Chief Minister MK Stalin’s government.
The central agency last week conducted extensive searches at the residence and office of Tamil Nadu State Marketing Corporation (TASMAC) Managing Director S. Visakan, IAS, grilling him for nearly 20 hours. The development followed the Madras High Court’s dismissal of a DMK-backed plea that sought to declare earlier ED raids at TASMAC offices as “illegal,” thereby clearing the way for the agency to continue its investigation under the Prevention of Money Laundering Act (PMLA).
The ED has now expanded its probe to include individuals reportedly close to top DMK functionaries, including film producer Akash Bhaskaran and Ratheesh Velu, who are alleged to be conduits in laundering unaccounted funds linked to TASMAC operations. Ratheesh Velu is believed to have fled the country ahead of the raids.
While the ED has yet to issue an official statement, the opposition AIADMK and BJP have stepped up attacks, accusing the DMK of shielding close associates of Deputy Chief Minister Udhayanidhi Stalin. The AIADMK, led by Edappadi K. Palaniswami (EPS), has also launched a viral social media campaign titled “Yaar Antha Thambi” (Who is that brother?), demanding answers from the ruling party.
Though many of the original FIRs investigated by the ED date back to the 2016–2021 AIADMK regime, the opposition is now turning the tables on the DMK, alleging the current government continued — and possibly benefitted from — the system of inflated expenses, unaccounted cash, and kickbacks in TASMAC’s procurement processes.
TASMAC, a major revenue-generating arm of the state, recorded earnings of ₹48,344 crore in the 2024–2025 fiscal year. It has long faced criticism for a lack of transparency and financial irregularities.
The DMK, already grappling with legal scrutiny involving multiple senior leaders and ministers in disproportionate assets and tax-related cases, has described the raids as “politically motivated.” However, the timing of the ED action—just as the DMK enters its final year in office—has added pressure on the ruling party to maintain political momentum amid growing anti-incumbency signals.
“This wasn’t completely unexpected. We knew that as the elections neared, agencies like the ED and CBI would become active. Our task is now to counter the narrative being pushed by the opposition for the next one year,” a senior DMK leader told Deccan Herald on condition of anonymity.
Political observers suggest the issue could become a major electoral talking point. “The refusal of Bhaskaran and Ratheesh to appear before the ED raises questions. Even if there is no direct evidence linking them to the DMK’s first family, the optics are damaging,” said veteran journalist Maalan Narayanan. He added that the DMK might resort to invoking issues of Centre-State relations and federalism to shift public focus but noted, “Tamil Nadu voters don’t always punish governments purely for corruption; performance matters too.”
As the state moves closer to the 2026 elections, the unfolding TASMAC scandal could play a significant role in shaping public perception—and the electoral fortunes of the DMK.