DVAC raids: Velumani's aide’s firm hit 11,363% growth in AIADMK regime

There were several shocking revelations in the first information report (FIR) filed against former AIADMK minister SP Velumani by the Directorate of Vigilance and Anti-Corruption (DVAC). Topping them is the allegation that the companies linked to the ex-minister saw a huge rise in turnover year after year over the last 10 years, under AIADMK regime.

The FIR, a copy of which is available with The Federal, has listed out 10 companies and their respective turnovers during the fiscal years 2012-13 and 2018-19, and their growth percentage.

Staggering growth

One company’s growth is particularly interesting. CR Construction in Coimbatore had a turnover of ₹38 lakh in 2012-13, which spiralled to ₹43.56 crore in 2018-19 —a whopping 11,363.15% growth. According to the FIR, the company is run by an accused named R Chandrasekar (A-5, per the FIR) and/or his relatives.

Also read: DVAC raids 52 premises of former AIADMK minister SP Velumani

“One R Chandrasekar, a close associate of AO-1 (Velumani), is the key person who used to decide the companies to whom the tenders were to be awarded. He used to dictate/direct the officials of municipal corporations, sitting from the official residence of the A-1 (Velumani), at Roja Illam, Greenways Road, RA Puram, Chennai,” said the FIR.

“It is noted that, during the time of offence, R Chandrasekar was holding the post of AIADMK party, Youth Wing Secretary, Coimbatore Rural district, under direct control of the AO-1 in his capacity as AIADMK party, District Secretary of Coimbatore Rural district. The freedom given by AO-1 to Mr R Chandrasekar to deal with municipal corporations officials thereby inducing the public servants to cause injudicious award of tenders for undue pecuniary advantage to the alleged companies clearly brings out the role of the A-1,” it noted.

During the DVAC raids, one of the accused, K Chandraprakash (A-4, according to the FIR), was admitted at KMCH Hospital in Coimbatore, after he developed chest pain.

Chandraprakash is the managing director of KCP Engineers Pvt Ltd, and a close aide of Velumani. The FIR said the company achieved 967.04% growth between 2012-13 and 2018-19, rising from ₹42.54 crore to ₹453.92 crore.

“Mr K Chandraprakash and Mr R Chandrasekar are the founders and major shareholders of KCP Engineers (P) Ltd. It is to note that, the majority of the alleged companies, directly/indirectly benefited by tenders have either K Chandraprakash, R Chandrasekar and/or their relatives as shareholder/partners/directors,” the FIR alleged.