ED wants FIR against TN Minister in ₹1,020cr tender manipulation
What's the story
The Enforcement Directorate (ED) has unearthed a major scam in Tamil Nadu's Municipal Administration and Water Supply (MAWS) Department. The agency claims that over ₹1,020 crore was collected as bribes through widespread tender rigging. The allegations are based on digital evidence seized during raids on the state Minister for Municipal Administration, KN Nehru, and his associates in April this year.
Legal proceedings
ED seeks FIR registration for money laundering probe
The ED has submitted a 258-page dossier to Tamil Nadu's Chief Secretary, Head of Police Force (HoPF), and Directorate of Vigilance and Anti-Corruption (DVAC). The agency has requested the registration of an FIR under Section 66(2) of the Prevention of Money Laundering Act (PMLA) on December 3. This would allow the ED to initiate a money laundering investigation.
Bribery claims
ED's allegations of bribery and tender manipulation
The ED has alleged that contractors paid 7.5-10% of contract value as bribes to Nehru's associates. These contractors benefited from manipulated tenders, with WhatsApp chats recovered from their phones serving as evidence. The agency also claimed that bribes were collected under the guise of "party funds" and government officers were involved in collecting and transferring these bribes to Nehru and his associates.
Evidence presented
ED cites specific instances of bribery payments
The ED has cited specific instances of bribes totaling ₹1,020 crore, based on messages allegedly retrieved from Nehru's associates' phones. This evidence is said to be just the "tip of an iceberg" in a larger scam involving government contracts. The agency claims bribes were collected for various projects, including community toilets, sanitation workers outsourcing, NABARD projects, village roads, etc.
Case connection
ED links evidence to previous CBI case
The ED stumbled upon this evidence during searches related to a PMLA case involving a CBI bank fraud investigation against True Value Homes (TVH), owned by Nehru's brother, KN Ravichandran. The PMLA investigation was closed after the Madras High Court quashed the CBI case. The agency alleges public funds were siphoned off for "luxurious lifestyles" and political expenditure.
Warning issued
ED warns Tamil Nadu government over FIR registration
The ED has cited a Supreme Court order in the Vijay Madanlal Choudhary case, asking the state government to register cases to investigate the alleged corruption. The agency has warned that not registering an FIR would mean knowingly assisting accused persons in collecting bribes. This is not the first time that ED has invoked section 66(2) of PMLA to get FIRs registered with the TN police.