The Enforcement Directorate on Tuesday said that it has seized cash totaling Rs. 81.7 lakh, and foreign currency (British pounds) equivalent to approximately Rs. 13 lakhs during search operations conducted at multiple premises of Tamil Nadu Higher Education Minister K Ponmudy and his MP son Gautham Sigamani Pon.
The ED conducted raids at seven premises of Tamil Nadu Minister and his MP son in a money laundering case linked to alleged illegal mining, under the provisions of the Prevention of Money Laundering Act (PMLA). During the extensive searches, the ED also seized various incriminating documents. Additionally, Fixed Deposits amounting to Rs. 41.9 Crore were frozen as part of the ongoing investigation.
The raids were undertaken at the premises of the father-son duo in Chennai and Ponmudy's stronghold of Villupuram, sources were quoted as saying.
The 72-year-old minister is a DMK MLA from the Tirukkoyilur assembly seat in Villupuram district, while his 49-year-old son Sigamani is a Member of Parliament (MP) representing the Kallakurichi seat.
What is the case against the father-son duo
The money laundering case stems from a state police FIR and chargesheet that alleged irregularities during Ponmudy's tenure as the state mining and minerals minister in the previous DMK government (between 2007 and 2011). There are allegations of violation of quarry licence conditions leading to "loss" of more than Rs 28 crore to the exchequer.
The state police had a filed a complaint to probe these charges of alleged corruption against the minister and those linked to him and the Madras High Court in June refused to stay the trial in this case after Sigamani approached it with a petition for relief.
The minister is accused of obtaining mining/quarry licences for his son and other family members and the licencees are alleged to have quarried red sand beyond the permissible limit.
The high court said that there were grounds to presume that the petitioner has committed the offence and hence the trial cannot be stopped.
Tamil Nadu CM Stalin reacts
Tamil Nadu Chief Minister MK Stalin said the minister will face this case legally, while adding that two cases against Ponmudi were recently dismissed. Stalin termed the raid a "diversion tactic against the Opposition meeting". The meeting of opposition leaders is all set to kick off in Bengaluru on Monday.
"The Governor is already doing election propaganda for us (DMK) and now ED is also doing election propaganda for us. This is making election work easy for us. This is usual and a drama done by them (BJP)," Stalin said.
The ED had recently initiated a similar action against another minister in the cabinet of Chief Minister MK Stalin after it arrested Transport Minister Senthil Balaji in an alleged cash-for-jobs linked money laundering case. Stalin and the DMK have slammed the action against Balaji as "intimidation politics" by the Centre.
(With inputs from PTI)
First Published: Jul 17, 2023 10:25 AM IST
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