A special court for cases under the Prevention of Corruption Act has ordered the attachment of fixed deposits of over ₹110 crore allegedly belonging to former Minister S.P.Velumani, which were in the name of firms of his associates.
Mr. Velumani was the Minister of municipal administration, rural development, law and implementation of special programmes in the AIADMK government led by Edappadi K. Palaniswami until early last year.
The Directorate of Vigilance and Anti-corruption (DVAC) police registered a first information report (FIR) in August last against Mr. Velumani and 16 others following an order of the Madras High Court. R.S. Bharathi, DMK MP and Jayaraman, convener of Chennai-based organisation, Arappor Iyakkam, had also sent representations to then Director, DVAC alleging that the former minister had extended large-scale favoritism, abusing his official position as a Minister for municipal administration in the matter of awarding of construction and supply of goods and service tenders in the Greater Chennai and Coimbatore Municipal Corporations to his close relatives.
On the basis of the FIR, the DVAC conducted searches at various places on August 10 and 11 last year. The DVAC has seized voluminous documents, fixed deposit receipts from his associates and frozen bank accounts of firms mooted by his associates and relatives.
Last month, the DVAC filed an application asking the special court to attach two assets in the names of KCP Infra Ltd., formerly, KCP Engineers Pvt. Ltd and Aalam Gold & Diamonds (P) Ltd.
In the application, an Superintendent of Police-level officer said that during the scrutiny of bank accounts, huge deposits to the tune of ₹109,12,20,174 were noticed in the name of. KCP Infra Ltd., formerly, KCP Engineers Pvt. Ltd and ₹1,81,00,000 in the name of Aalam Gold & Diamonds (P) Ltd. These fixed deposits were made only after the year 2017. These amounts (fixed deposits) were suspected to be part of crime proceeds, alleged to have been committed by the AO-1 (Mr. Velumani) and his associates in the awarding and execution of contracts in Chennai and Coimbatore Corporations.
After a scrutiny of bank accounts, it was found that the money was invested in fixed deposits. This finding necessitated freezing of those fixed accounts in order to avoid liquidation of these funds, before the completion of theinvestigation of this case, said the officer.
After hearing both sides, Special Judge J. Omprakash said on considering the said facts and on perusal of records as the investigation is pending with regard to the fixed deposits, in order to prevent the liquidation of the said deposits, it is necessary to pass an order of ad-Interim attachment.
The court also ordered issuance of notices to the two firms.
