With only a year to go for the crucial 2026 Tamil Nadu Assembly elections, the DMK government is facing an escalating political cyclone. The Enforcement Directorate’s (ED) widening investigation into the Rs 1,000 crore TASMAC alcohol scam is turning out to be a daunting challenge for the government of Chief Minister MK Stalin.

The probe agency last week searched the home and office of Tamil Nadu State Marketing Corporation (TASMAC) Managing Director S. Visakan, IAS, interrogating him for almost 20 hours. The move came after the Madras High Court rejected a DMK-sponsored petition that had asked to declare previous ED raids at TASMAC offices as “illegal,” leaving the way open for the agency to pursue its investigation under the Prevention of Money Laundering Act (PMLA).

The ED has now widened its investigation to cover people said to be close to senior DMK functionaries, such as film producer Akash Bhaskaran and Ratheesh Velu, and are accused of being conduits in the money laundering of unaccounted money traced to TASMAC operations. Ratheesh Velu has reportedly gone abroad before the raids.

Chennai, Tamil Nadu: The Enforcement Directorate conducted raids at eight locations in Chennai, including the residence of TASMAC MD Visakan and offices linked to filmmaker Akash Baskaran, in connection with a ₹1,000 crore liquor scam. Officials confirmed the raids are related… pic.twitter.com/7os6KTEsbT
— IANS (@ians_india) May 16, 2025

Even though the ED has not made a formal statement, the opposition AIADMK and BJP intensified attacks, alleging that the DMK is protecting close confidants of Deputy Chief Minister Udhayanidhi Stalin. AIADMK, under the leadership of Edappadi K. Palaniswami (EPS), also started a viral social media campaign called “Yaar Antha Thambi” (Who is that brother?), questioning the ruling party.

While most of the FIRs initially investigated by the ED go back to the 2016–2021 AIADMK government, the opposition is now turning the tables on the DMK and accusing the present government of continuing — and potentially profiting from — the syndicate of bloated expenses, unaccounted cash, and kickbacks in TASMAC’s purchase procedures.

TASMAC, which is the state’s key source of revenue, reported profits of Rs 48,344 crore in the 2024–2025 financial year. It has been criticised for a lack of transparency and financial mismanagement for years.

The DMK, already facing legal heat with various top leaders and ministers being involved in disproportionate assets and tax cases, has labeled the raids as “politically motivated.” The ED move, however, at a time when the DMK is in its last year in office, has put additional pressure on the ruling party to be politically on the move amid increasing signs of anti-incumbency.

“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.