Chennai: Thanks to the taxmen's raids on the Sasikala clan, the state-owned Tasmac booze shops across the state are running out of stocks as prime source Midas Distilleries, owned by Chinnamma's family, stopped supplies after the I-T swoop. Thanks to its influential political 'parentage', Midas has been supplying about 25 per cent of Tasmac requirements. The firm's Tasmac business in 2016 reportedly totalled around Rs 2,700 crore, while the figure was just about Rs.360 crore in 2010-11. With the I-T raids halting the production and supply chain, Tasmac is turning to other companies for its stocks to meet the demand.
I-T raids take shine off liquor business
“Midas has not been able to supply as the raids have hit its production and distribution chain. They are unable to move out stocks as they must pay the excise duty and other charges, and this is not possible as the I-T officials have frozen the bank accounts and seized relevant documents for scrutiny”, said an informed source requesting anonymity.
He said Midas had been supplying nine to eleven lakh cases of liquor in a month to Tasmac. One case has 12 full bottles (750 ml), 24 half-bottles or 48 quarter-bottles. The distillery dominated the shelves in the Tasmac shops, thanks to the stranglehold that Sasikala had on the government, which seemed to continue even after her imprisonment following the Supreme Court conviction in the DA case.
“There is now some fear in the Midas quarters that even after the I-T department moves out of the factories, the production may not pick up to the original scale and Tasmac might stay with some of the rival suppliers who have stepped in now for the kill”, said an informed source. Midas and Sasikala are not the only case of the mighty ones in the ruling dispensation taking control of the money-spinner liquor business in Tamil Nadu.
Former Union minister S. Jagathrakshakan's Elite Distilleries had enjoyed huge Tasmac patronage when his DMK party was in power. And Midas is not the only booze factory to come under I-T scanner; Elite too was raided in July last year. It was then reported that over 300 taxmen searched 40 places belonging to the DMK strongman, including Elite, and found Rs 15 crore of unaccounted cash plus evidence of huge tax evasion.
