Tamil Nadu BJP president K Annamalai was arrested by Chennai police on Monday morning, just hours before he was set to lead a protest against alleged corruption in the state-run liquor retailer, Tamil Nadu State Marketing Corporation (TASMAC).
Annamalai had planned to stage a demonstration outside the TASMAC headquarters in Egmore, Chennai. However, police detained him near his residence in Akkarai before he could leave for the protest site.
Several other senior BJP leaders were also taken into custody at different locations across the city. Among those arrested were former Telangana Governor Tamilisai Soundararajan, Mahila Morcha chief and Coimbatore South MLA Vanathi Srinivasan, and BJP MLA Saraswathi.
The protest was organised in response to an ongoing probe by the Enforcement Directorate (ED), which has uncovered what it describes as a large-scale corruption network within TASMAC.
The investigation has alleged financial irregularities amounting to ₹1,000 crore, implicating state officials, liquor distilleries, and bottling companies.
On Monday morning, BJP workers gathered at various locations in Chennai to participate in the protest. In anticipation of the demonstration, police were deployed in large numbers to prevent the march from taking place.
Tamilisai Soundararajan, a former BJP state president, was intercepted at her residence in Saligramam, where authorities had cordoned off the premises. Party members who attempted to march from Rajarathinam Stadium towards the TASMAC headquarters were detained in large numbers.
Following his arrest, Annamalai criticised the ruling government, accusing it of suppressing democratic protests.
He questioned the authorities’ approach, saying, “Is it because we announced the protest in advance that you are able to act in such a cowardly manner? What can you do if we launch a protest suddenly, without prior notice?”
The controversy surrounding TASMAC intensified after the ED conducted raids at multiple locations across Tamil Nadu on 6 March. Investigators claim to have recovered incriminating documents and electronic evidence pointing to financial irregularities.
According to an official statement from the ED, its probe uncovered manipulations in tender processes. Transport contracts worth ₹100 crore were allegedly awarded to bidders who failed to meet basic eligibility requirements.
Some contracts were granted even when there was only one applicant, raising concerns about transparency.
The investigation has also implicated several prominent liquor manufacturers, including SNJ, Kals, Accord, SAIFL, and Shiva Distillery. These companies allegedly funnelled unaccounted cash through bottling firms such as Devi Bottles and Crystal Bottles.
The ED claims these funds were used to bribe TASMAC officials in exchange for inflated supply orders.
In addition, the probe is examining allegations of bribery in staff transfers within TASMAC. It has been alleged that TASMAC shops routinely overcharge customers by Rs 10 to Rs 30 per bottle, generating illicit profits.
The ED has further alleged that the financial fraud was carried out through inflated expenses and fraudulent invoices, creating a cycle of illicit cash flow.
Officials claim that distilleries systematically inflated costs, particularly through bogus bottle-making contracts, before diverting funds towards bribery and illicit payments.
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