The Directorate of Vigilance and Anti-Corruption (DVAC) has issued a Look Out Circular against Rathesh Raj Shanmugavel, one of seven accused in a case of alleged large-scale irregularities at the Tamil Nadu State Marketing Corporation (Tasmac), according to sources. Authorities suspect Rathesh Raj may have fled the country to evade arrest, and have alerted airports and immigration checkpoints to prevent his movement.

Who Is Rathesh Raj Shanmugavel

Rathesh Raj is the brother of a Tamil Nadu-cadre IPS officer. In its First Information Report, the DVAC described him as an 'unauthorised power broker' who allegedly exercised undue influence over key administrative and commercial decisions within Tasmac. Investigators allege he influenced the then Tasmac Managing Director on matters including liquor brand approvals, award of bar licences, and the transfer of officials.

The Tasmac Malpractice Case

The DVAC registered the case in July over alleged malpractices spanning 2021 to 2025 — the period during which former Minister V. Senthil Balaji held the Prohibition and Excise portfolio. The allegations include manipulation of bar licence tenders, transport contracts, liquor-brand approvals, and transactions involving distilleries, breweries, and bottling companies.

Senthil Balaji, who is also named in the case, has secured anticipatory bail. He and the other accused have denied the allegations.

Network of Operators and Intermediaries

According to the DVAC, a network of bar operators, intermediaries, and proxy bidders allegedly manipulated tender procedures. Demand drafts were purportedly misused to control bids, while transportation contracts for Tasmac depots were reportedly diverted to favoured companies. The agency has further alleged that inflated or bogus transactions were routed through suppliers and distilleries, with a portion of the proceeds allegedly paid out as illegal kickbacks.

At least two persons have already been arrested in connection with the investigation. Among them is Mulanoor Karthik, suspected to have led a Karur-based group that allegedly collected money from bar owners in the name of 'party funds.'

Investigation Status and Searches

Shortly after registering the case, DVAC teams conducted searches at more than 40 locations across Tamil Nadu, seizing documents and electronic material relevant to the probe. Investigators are currently scrutinising financial records to trace the alleged flow of money and are working to establish whether Rathesh Raj has indeed travelled abroad.

The agency is also examining the full extent of his alleged role and his connections to the other accused. Further inquiries are underway to identify additional beneficiaries and verify the allegations.

What Comes Next

With a Look Out Circular now active, Rathesh Raj faces restrictions at all immigration exit points. Investigators are expected to seek legal routes — including Interpol coordination if he is confirmed to be abroad — to secure his return. The case is being closely watched as it directly implicates the administrative machinery of one of Tamil Nadu's largest state-run commercial entities during a politically significant period.