The Directorate of Enforcement on Tuesday launched an investigation into suspected money laundering in the sand mining business of the Tamil Nadu government.
Backed up by the Central Armed Police Force (CAPF), several teams of ED officials landed at sand quarrying sites and sales depots managed by the Water Resources Department across the State early in the morning.
Simultaneous searches were conducted at the offices/residences of sand contractors, including S. Ramachandran in Pudukottai and K. Rathinam in Dindigul, a few officials, and others associated with them. A team visited the office of the Engineer-in-Chief, Water Resources Organisation, at Chepauk in Chennai, sources said.
The ED is probing a money laundering angle emerging from alleged irregularities in the sand mining business, GST evasion in particular.
Though sand is sold online, the sources said investigators were following up on information that a huge quantity of sand was sold across the counter, involving cash that was not accounted for.
Investigators were checking whether receipts for payments issued to sand dealers or lorry operators who made purchases at sand depots in more than 15 locations close to riverbeds were genuine, the sources said.
According to police sources, the ED officials, accompanied by CAPF personnel, searched more than 30 locations in Tiruvallur, Kancheepuram, Vellore, Villupuram, Pudukottai and a few other districts.
“We were not informed about the searches. The ED seems to be investigating certain allegations related to the sale of sand mined from riverbeds and sold at designated sand depots or sales points managed by the Water Resources Department,” a police officer said.
ED officials were collecting data on the number of sand excavators operated along various riverbeds in the State over the past few months to assess the quantum of sand mined. They were also gathering information on the lorries that had entered sales depots to purchase sand, the sources said.
In Pudukottai, ED officials searched the premises of Mr. Ramachandran and one of his relatives.
One team went to Mr. Ramachandran’s office in Pudukottai town while another went to his residence at Muthupattinam village near Vallathirakottai.
Police sources said a team searched the residence of Manivannan, said to be a friend of Mr. Ramachandran, in Pudukottai town. Searches were also carried out at the office of Balamurugan, said to be an acquaintance of Mr. Ramachandran, in the town. Officials also searched the house of Veerappan, a relative of Mr. Ramachandran, in Alangudi police station limits in the district.
Later in the day, a team searched a quarry in Gandarvakottai. In Tiruchi city, day-long searches were carried out at the Kondayampettai sand storage point.
Even as news of the ED searches at sand storage points and quarries spread, operations at the quarries along the Cauvery near Mallampalayam and Nanniyur were halted. According to sources, trucks and earthmovers which were engaged in quarrying were hurriedly moved out of the quarries. Workers engaged by the sand contractors also left. The mud paths used by trucks transporting the sand were dug up, effectively preventing vehicular movement. Loading at the sand depot in Ganapathipalayam was also stopped, sources said.
(With inputs from R. Rajaram in Tiruchi.)
