The Enforcement Directorate (ED) has triggered a major political storm in Tamil Nadu, with a detailed 258-page dossier accusing KN Nehru, the Municipal Administration and Water Supply (MAWS) minister, of orchestrating widespread tender manipulation and bribery worth over ₹1,020 crore.
The allegations, detailed in a letter dated December 3, 2025, from the ED's Chennai Zonal Office-I, have prompted court intervention and intensified attacks by the Opposition, ahead of the upcoming 2026 Assembly elections.
Systematic racket
The ED's probe originated from digital evidence including WhatsApp chats, photos, call logs, and tender documents seized during April 2025 searches in the premises linked to Nehru's family and associates, including his brother N Ravichandran of the TVH Group, in a now-closed bank fraud case.
Investigators claim the material reveals a systematic racket where government tenders under MAWS were rigged in favour of pre-selected contractors before bids even opened, often disguised as "party fund" contributions.
Alleged operators named include Kavi Prasad, described as a long-time associate of the Nehru family and former director in family companies. Kavi Prasad allegedly acted as the crucial link between the MAWS and the Chief Minister's Office (CMO), coordinating works, influencing tender allotments, and connecting IAS/IPS officers to higher authorities. The dossier claims he manipulated processes to favour bribe-payers while maintaining an appearance of transparency.
Other figures implicated include D Ramesh and KN Manivannan, with evidence from their phones allegedly showing bribe collections from contractors and officers.
Proceeds were purportedly laundered through domestic and international hawala networks, bank transfers, and other means.
Direct beneficiary
While the dossier focusses on Nehru and his network, one investigative report highlights an indirect reference.
By virtue of being the DMK president, Chief Minister MK Stalin is described as a "direct beneficiary" of bribes funnelled as "party fund", with similar implications for his son, deputy Chief Minister Udhayanidhi Stalin. The linkage stems from Kavi Prasad's alleged role as a bridge to the CMO, though no direct evidence of personal involvement by Stalin or Udhayanidhi has been publicly detailed in official ED communications.
The ED has urged TN authorities, including the chief secretary, DGP, and the Directorate of Vigilance and Anti-Corruption (DVAC) to register an FIR under relevant laws, including the Prevention of Money Laundering Act (PMLA), to enable a full probe.
Slander campaign: Nehru
Nehru has strongly denied the charges, calling them a "slander campaign" and politically motivated. He asserted there is "no inkling of truth" in the ED's claims and vowed to prove his innocence in court. The controversy escalated when the Madras High Court, on February 20, directed the DVAC to "immediately register a criminal case" based on ED materials related to a linked "cash-for-jobs" scam in MAWS recruitments (alleging bribes of ₹25-35 lakh per post).
High court intervention
The high court directed the DVAC to register an FIR based on the voluminous materials and evidence shared by the ED on October 27, 2025.
Senior officials reportedly face a challenging situation for appeal, as the court's confirmation of prima facie evidence of grave corruption leaves little room for successful challenge. However, some sources indicate that citing the DVAC manual's requirement for detailed investigation before FIR registration could be used to seek a stay or deferral from the Supreme Court.
But, the high court's strong directive against such delays and potential evidence tampering makes further appeals risky and potentially counterproductive for the DMK leadership, which is said to be leaning toward avoiding any escalation.
Opposition hits out
Opposition parties, including the AIADMK, seized on the developments to target the DMK government, alleging protection of the corrupt and demanding resignations or probes. Actor-politician Vijay also called for Nehru's removal from the cabinet.
The BJP's Tamil Nadu unit, through state spokesperson ANS Prasad, urged Stalin to immediately sack Nehru from the cabinet, demand his resignation, and order a CBI probe into the corruption charges. He accused the DMK government of shielding corruption and stated that the court's division bench, led by Chief Justice Manindra Mohan Shrivastava, had "torn the veil off" the ruling party's alleged misconduct.
Misuse of agencies: Kanimozhi
DMK MP Kanimozhi alleged that the BJP is misusing central agencies such as the Income Tax Department, CBI, and ED for political gains ahead of elections. She asserted that the DMK has full faith in the judiciary and will counter the allegations legally, with Nehru cooperating fully to prove his innocence, while party leaders have rallied in support of the minister.
