CHENNAI: A look-out circular (LOC) has been issued against Rathesh Raj Shanmugavel, an accused in the Directorate of Vigilance and Anti-Corruption (DVAC) case relating to alleged malpractice in the Tamil Nadu State Marketing Corporation (Tasmac), amid efforts to trace him, sources said.
Rathesh Raj, who is the brother of a Tamil Nadu cadre IPS officer, has been named as one of the seven accused in the case registered by the DVAC in July. The agency has alleged that he functioned as an unauthorised intermediary and exercised undue influence over key decisions in Tasmac.
Investigators strongly believe that Rathesh could have escaped to a foreign country fearing arrest. The DVAC has already arrested at least two persons, including one Mulanoor Karthik, believed to be the head of Karur gang that allegedly operated to extract 'party funds' from bar owners.
The alleged irregularities took place between 2021 and 2025, when former minister V Senthilbalaji held the Prohibition and Excise portfolio. The former minister has managed to get anticipatory bail in the case. The case covers alleged manipulation of bar licence tenders, transport contracts, liquor brand approvals, and transactions involving distilleries, breweries, and bottling companies.
The DVAC has alleged that Rathesh Raj influenced the then Tasmac Managing Director S Visakan, an IAS officer, in matters including liquor brand approvals, bar licence tenders, and transfers of officials. Investigators have described him in the FIR as an "unauthorised power broker".
The case also concerns an alleged network involving bar operators and intermediaries. The DVAC has alleged that tender procedures were manipulated through proxy bidders and misuse of demand drafts, while transport contracts for TASMAC depots were allegedly diverted to favoured firms.
The agency has also alleged inflated or bogus transactions involving suppliers and distilleries, with illicit cash allegedly channelled as kickbacks.
The agency conducted searches at more than 40 locations across Tamil Nadu soon after registering the case and said incriminating documents were seized. Former minister Senthilbalaji and the other accused have denied wrongdoing, and the investigation is continuing.