Annamalai, Tamil Nadu BJP Leaders arrested ahead of Rs 1,000-crore TASMAC protest

K Annamalai

Chennai police arrested Tamil Nadu BJP President K. Annamalai on Monday morning, just hours before he was scheduled to lead a protest against alleged financial irregularities at the state-run liquor retailer, Tamil Nadu State Marketing Corporation (TASMAC).

Annamalai had planned to rally outside TASMAC’s headquarters in Egmore, Chennai, but police detained him near his home in Akkarai as he attempted to leave.

The arrests extended beyond Annamalai. According to The Indian Express, other senior BJP figures, including former Telangana Governor Tamilisai Soundararajan, Mahila Morcha head and Coimbatore South MLA Vanathi Srinivasan, and BJP MLA Saraswathi, were also picked up at various locations across the city.

These arrests occurred as the party prepared to highlight a significant corruption scandal uncovered by the Directorate of Enforcement (ED), which claims that TASMAC is involved in a Rs 1,000-crore fraud linked to state officials, liquor companies, and bottling firms.

As BJP workers began gathering in Chennai on Monday morning, police were deployed in large numbers to prevent the protest. Soundararajan, a former state BJP chief, found her residence in Saligramam cordoned off by police. Meanwhile, supporters marching from Rajarathinam Stadium toward TASMAC's office were detained en masse, as reported by The Indian Express.

Following his arrest, Annamalai did not hold back, criticizing the police action as a cowardly move by the ruling government to stifle democratic dissent. “You only accomplished this because we announced the protest ahead of time,” he stated, as quoted by The Indian Express. “What happens when we catch you off guard with a sudden demonstration?”

The ED's investigation, which involved raids across Tamil Nadu on March 6, has uncovered evidence of corrupt dealings. The agency claims to have recovered incriminating documents and digital proof of manipulated tenders, including transport contracts worth Rs 100 crore awarded to bidders who did not meet basic requirements, with some contracts having only one applicant. Major liquor companies, such as SNJ, Kals, Accord, SAIFL, and Shiva Distillery, allegedly funneled unaccounted cash through bottling firms like Devi Bottles and Crystal Bottles to bribe TASMAC officials for inflated supply deals, according to the findings reported by the ED.

The probe has also revealed instances of bribery in staff transfers and claims that TASMAC shops have been quietly overcharging customers by Rs 10 to Rs 30 per bottle.

The ED alleges that the scam operated on fake invoices and inflated expenses, with distilleries artificially increasing costs through bogus bottling contracts before siphoning off cash for illegal payoffs, as reported by The Indian Express. With the number of arrests increasing and the investigation escalating, tensions between the BJP and Tamil Nadu’s ruling parties are reaching a boiling point.