Overview
- The TVK government implemented the closure of 717 state-run TASMAC outlets near schools and places of worship and has started a parallel administrative crackdown on alleged informal collections inside the liquor network.
- Senior officials told the government that roughly Rs 102 crore a month may have been diverted through a so-called 'party fund' system and the administration has ordered immediate steps to stop those leakages and bring all liquor receipts into the treasury.
- Reforms being fast-tracked include outsourcing or digitising the Rs 10 empty-bottle deposit and buyback process, tightening procurement-to-retail controls, and introducing stronger shop-level checks to stop unaccounted cash flows.
- The closures have displaced 3,474 TASMAC workers with officials reporting 2,331 redeployments so far and plans to move the remaining staff to other shops; the government ruled out privatising TASMAC.
- On the ground, residents and reporters say many customers have shifted to nearby outlets or informal drinking spots and officials warn the closures could cut annual liquor receipts by an estimated Rs 7,000–8,000 crore, while further reviews may expose additional irregularities.