So, will TASMAC finally reform? Clearing away years of corruption is an arduous task that has long called for attention

Why does TASMAC (Tamil Nadu State Marketing Corporation) overcharge customers? Why has this been happening over many years, perhaps over decades? Why has no government in Tamil Nadu been able to stop it and stem the rot? How can TASMAC staff show such a brazen disregard for MRP (maximum retail price) and the law? From whom do they draw their authority and how have they developed such a callous, belligerent attitude? Rs 5 extra for every quarter bottle, Rs 10 for every half bottle and Rs 20 for every full bottle (750 ml) sold – this is the rate for hard liquor or spirits. For a beer bottle priced at Rs 170, you have to pay Rs 180. At some outlets, they are a little considerate if you buy a full bottle – Rs 10 extra. Imagine the kind of black money generated each day! 

Chief Minister C. Joseph Vijay seems to be aware of all this. In fact, the ‘overcharging’ issue featured in his election campaign ("bottle-ku pathu rooba"). I hope it remains a major focal point for the TVK administration now on. A recent Times of India report mentioned the TASMAC management setting up a flying squad across the state to aggressively act on MRP violations, which can result in immediate suspensions and heavy fines for the staff. Will this radically change the situation on the ground? I was curious to find out. 

Two days ago, I picked an outlet in Ekkaduthangal, near the BSNL office. A bottle of Royal Challenge whisky (MRP Rs 1040) was being sold at Rs 1050. When I asked the person at the counter why the extra amount was being charged when the government directive was not to, he said they were awaiting the administrative process to be in place (whatever that meant) after the closure of the 700-odd shops, and till then it would be status quo. His colleague at the counter glared silently and I quietly slipped away.  A friend went to the ‘elite’ TASMAC outlet at Nexus Vijaya Mall in Vadapalani to try his luck. There it was Rs 20 extra for a bottle of Signature whisky. When he asked the same question, he received no response; he was told to pay in cash as the card machine wasn’t working. Obviously, they did not like being questioned.  

If overcharging is one of the features you would expect at TASMAC, the ambience and the conditions around most of the outlets is another given thing – discarded wrappers and bottles; men lying faint, blind drunk; and the stench… one person referred to an outlet he visited as a “stink-hole”.   

Now, coming to the kind of brands that are sold or made available in the ordinary outlets – there is really no choice. Forget Antiquity, you may not even get RC or Signature. You will be made to buy 1848 or British Empire (yes, whisky).  It is almost 80 years since we gained Independence from the British, so much for British Empire. (The same brand for beer has been selling very well over the years.) How many can visit the few ‘elite’ TASMAC outlets that stock mostly foreign liquor?   

Though this is the situation on the ground, the account books show a different, rosy picture. During 2024–25, TASMAC earned Rs 48,344 crore, among the highest in India. The state-owned enterprise is the sole monopoly responsible for wholesale and retail vending of alcoholic beverages in Tamil Nadu. In terms of total alcohol consumption and sales volume, Tamil Nadu consistently ranks as one of the top two states in India. The state accounts for roughly 16 per cent of the country’s total alcohol consumption, moving more than 64 million cases a year. Karnataka and Kerala are close behind. 

But what sets Chennai/ Tamil Nadu apart from Bangalore/ Karnataka, for example? Bangalore is home to many private retail shops, local bars and pubs. They cannot buy alcohol directly from the manufacturers; they purchase their stock from the government-owned Karnataka State Beverages Corporation Ltd (KSBCL). KSBCL acts as the exclusive distributor and middleman to ensure the state government collects its excise duties and taxes before the alcohol reaches the public. Unlike TASMAC, where the government runs the retail outlets, Karnataka issues licenses to private individuals and businesses to operate retail storefronts. And that makes a huge difference – in pricing as well as ambience. 

In Kerala, the Kerala State Beverages Corporation (BEVCO) owns and operates all retail outlets. While the state does license private premium bars and hotels for on-premise consumption, any consumer buying a bottle to take home must stand in a government-run BEVCO queue or visit the premium outlets. Point to note: only MRP is charged. BEVCO maintains strict MRP compliance, says a report, because its workforce is structured differently and its billing is fully automated. 

Coming back to overcharge, the main reason is a deep-rooted network of illegal collections, says an article (Reddit). Court testimonies and investigations by bodies like the Enforcement Directorate have revealed that a section of supervisors and district-level officials demand fixed daily bribes or ‘collections’ from individual shop workers. To protect their jobs, the salesmen pass the burden onto the consumers by charging extra. 

A report in The Hindu says that unlike Kerala’s BEVCO employees, who are regularised government staff with structured salaries, hikes and bonuses, TASMAC retail workers are mostly employed on a contract/ consolidated pay basis. If inventory is damaged, broken, or stolen at an outlet, the monetary loss is directly deducted from the salesmen's salaries. Workers often use the extra Rs 10 or Rs 20 per bottle to build a cushion against such deductions and supplement their income, the report points out. Also, while Kerala integrated transparent, mandatory printed receipts years ago, a large majority of TASMAC outlets long resisted strict digital tracking. Salesmen frequently avoid issuing printed bills, insist on cash, or manipulate rounding-off tactics during digital or UPI transactions to manually pad the final price. (My experience: even with card payment they charge extra. No bother.) 

After the TVK-led government took charge, a Ministry for Prohibition and Excise has been established, to specifically strengthen regulation, transparency and accountability across all TASMAC operations. Several helplines have been provided (Google to find out) and you can now file a complaint directly with the Directorate of Vigilance and Anti-Corruption via their hotline. K. Nanthakumar is the newly appointed managing director of TASMAC. Clearly, he and his team will have a lot to do to get rid of all years of the corruption and get some sense of consciousness and cleanliness into the system.

* Image: AI-generated