NEW DELHI: The Enforcement Directorate (ED) has shared fresh information with the Tamil Nadu government in connection with an alleged Rs 366 crore money laundering and corruption racket involving transfers and appointments of officials and engineers in the Municipal Administration, Water Supply and Sanitation (MAWS) department, officials said on Tuesday.
The federal probe agency has sent a letter in this context to the State Chief Secretary and the Directorate of Vigilance and Anti-Corruption, seeking the registration of a police FIR against Minister K N Nehru and some others allegedly linked to him.
Earlier, in October and December last year, the agency had written two separate letters to the State government authorities, alleging “widespread” corruption in MAWS tenders and recruitments and linking Nehru to these charges.
The minister had then defended himself, saying he was being continuously targeted by the ED in a bid to defame him and that he would legally face the charges.
Through a note dated October 27, the agency stated that it had provided evidence of bribes ranging from Rs 25 lakh to Rs 35 lakh being collected from each candidate.
The agency also said it had provided details of about 150 candidates whose information was found in the phones of close associates of K N Nehru and sought investigations into the appointment of about 2,500 candidates.
The ED also sent another letter on December 3, 2024, relating to alleged manipulation and corruption in government contracts and works of MAWS.
“Through the said report, evidence related to tender rigging or manipulation and corruption in government contracts ranging from 7.5% to 15% was provided. Direct evidence relating to the collection of Rs 1,020 crore in bribes was also provided. Both the said notes and the evidences stated therein dealt with specific areas of corruption in MAWS,” the agency stated.
Nehru had condemned the ED and alleged that it had joined the ranks of opposition parties that cannot tolerate the achievements of the DMK and was hence “continuously targeting” him to “defame” him.
The probe was initiated by the ED on the basis of a CBI FIR which was later quashed, and the ED case fell through as the predicate offence was closed. The accused in the bank “fraud” case repaid the loan through a one time settlement, officials said.
The ED has, therefore, utilised its powers under Section 66(2) of the Prevention of Money Laundering Act (PMLA) to share these inputs and “evidence” with the State government and police so that they can book a criminal case, which in turn can become the foundation for filing a PMLA case.
The PMLA provision empowers the ED to share information and evidence regarding an offence with the police or a designated law enforcement agency.
In its latest communication, the ED informed the Tamil Nadu government that it has recovered photos, WhatsApp chats and documents which show “many” instances of bribes allegedly being collected for the transfer and posting of government officers and engineers in MAWS.
The agency also stated that the detailed report consists of all the evidence — about 102 photos of WhatsApp chats, bribe collection confirmations, names of officers and transfer orders found in the phones of private persons who are close associates of K N Nehru — showing the collection of bribes ranging from Rs 7 lakh to Rs 1 crore, depending on the post and place of posting, from various officers and engineers by Nehru’s close associates.
“This report provides direct evidence of bribe collection in transfers and postings of officers and engineers of MAWS. The details of about 340 officers and engineers whose transfer and posting orders were found in the phones of the close associates of Nehru are also provided. This report also provides direct evidence of money laundering by Nehru, his family and close associates through various methods amounting to Rs 365.87 crore.
“The evidence discussed in this report is a small part of a much larger transfer and posting scam in government departments,” the agency said.
The evidence, it added, was found by the ED accidentally when investigations were being conducted in a different case against a few individuals.
“The evidence recovered from Kavi Prasad, D Ramesh and K N Manivannan is of a limited period. Further, the individuals named in this report are only a few persons involved in the larger MAWS transfer and posting bribe collection,” the agency said.
“The individuals covered in the search dealt with the collection of bribes only in a few areas.
“The bribes from government officers of other districts are being collected through other unknown individuals which needs to be investigated. The bribes in transfer and posting of other ministries are also being collected through unknown persons. The bribes are much larger in quantum which needs to be investigated,” it added.
The federal probe agency further stated that huge bribes allegedly collected by ministers are being utilised for a luxurious lifestyle, creation of personal assets, political expenditure and other purposes by the beneficiaries.
“Bribes are being transferred through the hawala network — both within and outside the country — so as to keep the identity of the ultimate beneficiary secret and leave no traces of the money trail,” the agency said.