A Tricky Situation in the Retail of Alcoholic Beverages in Tamil Nadu :

In India, the Maximum Retail Price (MRP) is regulated under the Legal Metrology (Packaged Commodities) Rules, 2011, and the Legal Metrology Act, 2009. These laws mandate that all pre-packaged commodities must display the MRP — the highest price at which the product can be sold to a consumer. Selling products above MRP is a punishable offense under these regulations.

In Tamil Nadu, the sale of liquor is managed exclusively by the state-owned Tamil Nadu State Marketing Corporation (TASMAC). While MRP laws apply to alcoholic beverages as they do to all other packaged goods, the retail sale of liquor also falls under the jurisdiction of State Excise Laws, which regulate production, distribution, and sale.

Despite these safeguards, several media reports and customer testimonies indicate widespread overcharging at TASMAC outlets. Customers have reported being charged ₹10 to ₹25 extra per bottle — and in some cases, even up to ₹50 or more. This practice continues unchecked, causing frustration and raising questions about enforcement.

Lack of Transparency and Receipts

One of the major concerns raised by consumers is the non-issuance of receipts, both for cash and digital payments. Staff at some outlets allegedly justify the extra charges by citing operational costs such as rent, electricity, and losses due to damaged stock. However, TASMAC’s official stance remains that there are no instructions to charge above MRP, and such practices are unauthorized.

Impact on Consumers

This systematic overcharging disproportionately affects regular buyers and undermines consumer trust. The absence of receipts further weakens transparency and denies customers a basis to lodge complaints or seek accountability.

No Visible Mechanism for Grievance Redressal

There appears to be no dedicated grievance redressal mechanism in place for consumers. While contact details for complaints may exist, their visibility and effectiveness are highly questionable. The lack of proactive enforcement only fuels skepticism among customers.

Employee Concerns and Working Conditions

Interestingly, TASMAC employees themselves have raised grievances about their work environment — citing long hours, increased workload, and inadequate compensation. These internal pressures, however, cannot justify unauthorized pricing practices at the consumer level.

Legal Scrutiny and Allegations of Corruption

In March 2025, the Enforcement Directorate (ED) conducted searches at the TASMAC headquarters in Chennai as part of a money laundering investigation. The probe allegedly uncovered a ₹1,000 crore scam involving rigged tenders, inflated expenditures, and irregular financial transactions. While the Madras High Court initially dismissed the Tamil Nadu Government’s challenge to the ED’s actions, the Supreme Court later stayed the investigation, citing concerns about jurisdiction and procedural overreach.

Despite the political and legal tumult, the core issue of overcharging at the retail level continues unaddressed. Receipts are still not issued, and consumers remain vulnerable.

Lack of Political Will

What is particularly disheartening is the silence of opposition parties. In spite of the gravity of the issue, there have been no public protests, dharnas, or meaningful attempts to gather evidence or raise awareness. This silence has led many consumers to suspect political complicity or indifference.

Conclusion

This ongoing violation of MRP norms under a state-controlled monopoly highlights a significant governance gap. While legal proceedings and political debates dominate headlines, the ordinary consumer continues to suffer from unchecked overcharging, lack of transparency, and no clear avenue for redress. Unless robust oversight and accountability mechanisms are put in place, the situation will only further erode public trust.

It is time for urgent and sincere action — both administrative and political — to protect consumer rights. How is it in the other parts of India ? more