The Directorate of Enforcement (ED) on Monday, July 17, 2023, launched searches at residences and premises linked to DMK heavyweight and Minister for Higher Education K. Ponmudy in Chennai and Villupuram, in connection with an alleged money laundering case.
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Mr. Ponmudy is the second T.N. Minister 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 at around 7 a.m. and began inquiries with the Minister and his family members inside. Mr. Ponmudy’s supporters and lawyers gathered outside the house, even while CRPF personnel stood guard around the house.
A team of the ED simultaneously 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 at the premises of Surya Educational Trust in Vikravandi and the residence of his son and Kallakurichi MP, Gautham Sigamani in Villupuram. A total of nine places are being searched.
Sources said the present investigation is linked to a corruption case booked against Mr. Ponmudy by the Directorate of Vigilance and Anti-Corruption (DVAC) in 2012. The DVAC case is still pending before a special court. 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 person in the case
The allegations state that the Minister, along with other accused persons quarried 2,64,644 lorry excess loads of red sand. Mr. Ponmudy is 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 into the case pending against Mr. Ponmudy.
Earlier 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 have enhanced their security cordon around the State Secretariat and the Minister’s official chamber, expecting that ED officers may inspect these premises as well.
