The Directorate of Enforcement (ED) on Monday took in DMK Minister for Higher Education K. Ponmudy for questioning after conducting searches for 13 hours in Chennai and Villupuram, in connection with an alleged money laundering case. His son and MP P. Gautham Sigamani was also taken in.
Mr. Ponmudy is the second Minister of Tamil Nadu to come under the radar of the ED. Earlier on June 14, Minister V. Senthilbalaji was arrested by the agency, also in a money laundering case.
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 around 7 a.m. and began inquiries with the Minister and his family members. Mr. Ponmudy’s supporters and lawyers gathered outside the house even as CRPF personnel stood guard around the premises. During the course of the search, the officers also seized certain documents from inside a car parked in the house.
An ED team simultaneously also arrived at the Minister’s residence at Shanmugapuram in Villupuram. The Minister and his family were not present at the time of the searches. The team contacted the Minister’s staff and collected the keys to the house and searched the premises with heavy police protection. Sources said the searches were also carried out on the premises of Surya Educational Trust in Vikravandi and Mr. Sigamani’s residence in Chennai and Villupuram. The searches were conducted at seven places.
Sources said the present investigation was linked to a corruption case booked against Mr. Ponmudy by the Directorate of Vigilance and Anti-Corruption (DVAC) in 2012. During the searches on Monday, unaccounted for cash and incriminating documents were seized from places, including Mr. Ponmudy’s residence. However, the ED has not released the details to the media yet. Experts were called to verify electronic records, including digital signatures and other bank transactions. Reports suggested appraisers were called to assess the jewellery at the house.
At the end of searches, Mr. Ponmudy and his son were served summons for questioning. Around 8.10 p.m., amidst tight security by CRPF personnel, Mr. Ponmudy was taken to Shastri Bhavan in Nungambakkam, where the ED office is located. A luxury car, which was parked in the portico of the Minister’s house, was also seized, sources said. Mr. Ponmudy was questioned by the officers at Nungambakkam and no advocate or family members were allowed in with him, sources said.
The DVAC case is still pending before a special court in Villupuram. The case relates to alleged irregularities when Mr. Ponmudy was the Minister for Mines and Mineral Resources between 2007 and 2011, and obtained quarry licenses in favour of his son, friends and relatives. Mr. Sigamani is the second accused in the case.
The allegations state that the Minister, along with others, quarried 2,64,644 lorry loads of red sand beyond permissible limits. He has been accused of violating quarry license conditions, thereby causing a loss of ₹28 crore to the public exchequer by not paying fees for the red sand excavated beyond permissible limits, sources said.
Last month, the Madras High Court had refused to stay further proceedings in the case pending against Mr. Ponmudy.
In October 2020, the ED had seized assets worth ₹8.6 crore held by Mr. Sigamani. This was equivalent to the value of “illegally” acquired foreign security and the alleged non-repatriated foreign exchange earned abroad till date. The ED had taken up the probe based on information that Mr. Sigamani had illegally acquired foreign security without the Reserve Bank of India’s approval, in violation of Section 4 of the Foreign Exchange Management Act (FEMA).
The investigation had “revealed that in March 2008, he had made overseas investment of $1,00,000 (₹41,57,225) in acquiring 2,45,000 shares of PT Excel Megindo, Jakarta, and $55,000 (₹22,86,924) in Universal Business Ventures, UAE”. The agency had alleged the investments were made without the RBI’s permission.
Meanwhile, the police enhanced their security cordon around the State Secretariat and the Minister’s official chamber, expecting that ED officers may inspect these premises as well. However, the ED did not search these premises till end of day.
(With inputs from S. Prasad in Puducherry)
