ED alleges major corruption network in Tamil Nadu, seizes Rs 4.73 cr
Allegedly, consultants operated as brokers, establishing shell companies to channel kickbacks as service fees and consultancy payments in government departments
The Chennai Zonal Office of the Enforcement Directorate (ED) conducted extensive search operations in Chennai and Vellore, uncovering a corruption network built on kickbacks for clearances in state departments.
The raids, conducted under the Prevention of Money Laundering Act (PMLA) 2002, targetted 16 premises linked to a senior government officer and several high-profile consultants on Tuesday (May 6).
FIR by DVAC
The operation was launched following an investigation into an FIR lodged by the Directorate of Vigilance & Anti-corruption (DVAC) against S Pandian, former Superintendent in the Tamil Nadu Environment Department, and others for alleged involvement in disproportionate asset cases.
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According to the ED, authorities have uncovered a sophisticated corruption scheme implicating numerous consultants serving various government departments.
Investigations revealed that these consultants, operating as brokers, established shell companies and consultancy firms to channel kickbacks as service fees and consultancy payments. The network reportedly secured illegal and expedited clearances for clients through fixed commissions paid to officials, the ED officer said.
‘Consultants’
Prominent consultants identified as key facilitators in the illegal approval process include Prabhakar Sigamony, AK Nathan, Naveen Kumar, Santhosh Kumar, and Vinoth Kumar. The ED's search operations led to the seizure of unaccounted cash amounting to ₹4.73 crore, earmarked for bribe payments.
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The seizure includes critical documents, digital data, and property deeds, shedding light on the extensive laundering and funnelling of illicit funds. Assets procured with these proceeds of crime (POC) are currently being identified, quantified, and will subsequently be attached under the PMLA regulations.
During the raid, an employee of a key consultant attempted to destroy her phone to obliterate evidence, drawing legal action for evidence destruction and non-cooperation.
An employee of a key consultant tried to destroy her phone to obliterate evidence, drawing legal action for evidence destruction and non-cooperation.
Further investigations are ongoing.