TN govt orders DVAC probe into ED's corruption charges against Minister KN Nehru

The Tamil Nadu government has directed the Directorate of Vigilance and Anti-Corruption (DVAC) to conduct a detailed inquiry into serious corruption allegations levelled by the Enforcement Directorate (ED) against senior DMK leader and Municipal Administration Minister KN Nehru.

The ED, in two detailed communications sent to the state Director General of Police in October and early December 2025, accused the minister’s associates of collecting bribes totalling at least Rs 1,020 crore from contractors executing projects under the Municipal Administration and Water Supply (MAWS) department. The agency submitted a 258-page dossier, backed by documents, WhatsApp chats, photographs, and digital evidence seized during raids in April 2025.

ED’s findings

According to the ED's findings, contractors were allegedly forced to pay 7.5 per cent to 10 per cent of contract values as "party fund" kickbacks, with additional layers of bribes pushing the total extortion to 20-25 per cent in some cases.

The irregularities spanned community toilets, sweepers' housing, sanitation outsourcing, and water-related projects. A separate complaint flagged corruption in recruitment of engineers and planning officers. The evidence emerged from an ED money laundering probe linked to a CBI-registered bank fraud case, though the related Enforcement Case Information Report (ECIR) was later quashed. Under Section 66(2) of the PMLA, the ED forwarded the incriminating materials to state authorities, urging immediate registration of an FIR and full investigation.

Also Read: TN bureaucrats under scanner in tender scam involving minister KN Nehru

Sources said this marks the first instance where the ED has formally sought state police action on such corruption evidence derived from a closed PMLA case, highlighting the gravity of the allegations. In response, the DGP forwarded the complaints to the government, which approved a detailed inquiry. DVAC has initiated the probe but is following standard procedure, a preliminary inquiry followed by verification to establish prima facie offence before registering an FIR.

Inquiry an ‘eyewash’: ED officer

A senior ED officer, speaking on condition of anonymity, dismissed the preliminary inquiry as an "eyewash". "Why hasn't DVAC registered an FIR based on Supreme Court guidelines and proceeded with a thorough investigation?" the officer questioned.

Also Read: ED demands FIR against TN minister KN Nehru, claims massive hawala racket

He expressed belief that authorities are deliberately avoiding FIR registration, knowing it would trigger fresh ED intervention under PMLA for money laundering aspects.

"They know that once a case is booked on the predicate offence, the ED will step in again. This appears to be a tactic to stall the process," the officer added.

Nehru denies allegations

Nehru has strongly denied the charges, terming them a "politically-motivated smear campaign" by the BJP-controlled Centre. He accused the ED of targetting DMK leaders to undermine the "Dravidian Model" government ahead of elections.

This development follows the ED's legal moves in other Tamil Nadu cases, including approaching the Madras High Court for directions to register FIRs in illegal sand mining matters, marking the first such instance where the agency sought court intervention against state anti-corruption bodies for alleged delays.

Also Read: KN Nehru case: DMK slams ED raids as 'political vendetta'

The petition intensifies the ongoing tussle between central probe agencies and the state government over high-profile corruption probes.

AIADMK MP moves Madras HC

IS Inbadurai, an AIADMK Rajya Sabha MP, has filed a petition in the Madras High Court seeking directions to the DVAC to immediately register an FIR against Nehru and his associates over the bribery charges.

Inbadurai argued that the DVAC is obliged to act promptly on the ED's inputs, especially given Supreme Court guidelines on investigating cognisable offences. The case is expected to come up for hearing soon, amid mounting political pressure.

Also Read: ED raids multiple locations linked to TN minister KN Nehru

Opposition parties, including AIADMK and BJP, have demanded the Minister's resignation and a court-monitored probe, calling the allegations "just the tip of the iceberg".