CHENNAI: Following searches across Chennai, Kancheepuram and Chengalpattu, the enforcement directorate seized and froze cash, bullion, bank balances and shares totalling Rs 18.10 crore on Wednesday, the agency said in a release.
The raids were part of a probe into a large-scale fraud involving forged land records and inflated compensation claims in acquisitions carried out by the National Highways Authority of India (NHAI) and the State Industries Promotion Corporation of Tamil Nadu (SIPCOT).
ED’s investigation is based on FIRs registered by the Sriperumbudur and Kancheepuram police in 2021 and 2022, which alleged land parcels originally granted by entities of a private group of companies in 1991 for public utilities were illegally reclaimed using fabricated documents.
According to the agency, key individuals orchestrated the unlawful cancellation of deeds registered in favour of public authorities just before acquisition. These land were then sold to associates at artificially inflated values to secure higher compensation during NHAI’s Bangalore-Chennai Expressway project and SIPCOT’s industrial expansion.
The agency said the proceeds were later layered through multiple bank accounts of relatives, associates and shell entities, with large cash withdrawals made to conceal the origin of funds. During the searches, incriminating documents, digital records and internal communications linked to the forged deeds, inflated valuations and movement of funds were recovered. Further investigation is under way.