The Directorate of Enforcement (ED) has launched searches at residences and premises linked to Tamil Nadu Minister for Higher Education, K. Ponmudy, in Chennai and Villupuram. The searches are part of an alleged money laundering case. This development comes shortly after the arrest of Minister V. Senthilbalaji by the ED on similar charges.
In Chennai, officers of the ED, accompanied by armed personnel of the Central Reserve Police Force (CRPF), arrived at Mr. Ponmudy’s house in Saidapet early in the morning. They began their inquiries with the Minister and his family members inside the residence. Outside the house, Mr. Ponmudy’s supporters and lawyers gathered, while the CRPF personnel maintained strict guard.
At the same time, a team of the ED arrived at the Minister’s residence in Shanmugapuram, Villupuram. However, neither the Minister nor his family were present during the searches. The team collected the keys to the house from the Minister’s staff and conducted the search with heavy police protection.
The searches also extended to the premises of Surya Educational Trust in Vikravandi and the residence of Mr. Ponmudy’s son and Kallakurichi MP, Gautham Sigamani, in Villupuram. In total, nine places are being searched as part of the ongoing investigation.
Sources indicate that the current investigation is linked to a corruption case registered against Mr. Ponmudy by the Directorate of Vigilance and Anti-Corruption (DVAC) in 2012. The DVAC case, which is still pending before a special court, pertains to alleged irregularities committed by Mr. Ponmudy during his tenure as the Minister for Mines and Mineral Resources from 2007 to 2011. It is alleged that quarry licenses were obtained in favor of his son, friends, and relatives, resulting in a loss of ₹28 crore to the public exchequer. Gautham Sigamani is also an accused in this case.
The accusations state that Mr. Ponmudy, along with other accused individuals, excavated 2,64,644 excess lorry loads of red sand, in violation of quarry license conditions. This allegedly caused financial losses to the public exchequer, as fees for the excavated red sand beyond permissible limits were not paid.
In October 2020, the ED had confiscated assets worth ₹8.6 crore belonging to Gautham Sigamani. The value of these assets was deemed to be equivalent to the foreign security allegedly acquired illegally by Mr. Sigamani and the non-repatriated foreign exchange earned abroad. The ED had initiated their investigation based on information suggesting that Mr. Sigamani had acquired foreign security without the approval of the Reserve Bank of India, thus violating the Foreign Exchange Management Act (FEMA).
During the investigation, it was revealed that Mr. Sigamani had made overseas investments in PT Excel Megindo, Jakarta, and Universal Business Ventures, UAE, without the RBI’s permission.
Meanwhile, in anticipation of further inspections by the ED, the police have increased security around the State Secretariat and the Minister’s official chamber.
The search operation carried out by the ED signifies a significant development in the ongoing investigation against Minister K. Ponmudy. It highlights the seriousness of the allegations leveled against him and his son. As the case progresses, further details are expected to emerge, shedding more light on the nature and extent of the alleged money laundering activities.
