CHENNAI: Enforcement Directorate on Monday morning searched the premises of Higher Education Minister K Ponmudy and his son Gowtham Sigamani in Chennai and Villupuram under the Prevention of Money Laundering Act. The case pertains to allegations that Ponmudy violated quarry licenses during his tenure as a minister in the DMK government between 2007 and 2011.
The searches by Enforcement Directorate come after Madras High Court last month refused to stay proceedings in the case while dismissing a petition filed by Gowtham Sigamani, the co-accused and son of K Ponmudi.
The DMK leader was accused of illegally quarrying an excessive amount of red sand, amounting to 2,64,644 lorry loads. The alleged violation resulted in a loss of over Rs 28 crore to the public exchequer. Ponmudy is the second minister in the DMK Cabinet who is under the scanner of the Enforcement Directorate. Senthil Balaji, who is the minister under the DMK regime, has been arrested by Enforcement Directorate. He is currently recuperating in Kauvery Hospital.
Incidentally, Chief Minister M K Stalin is scheduled to leave for Bengaluru on Monday to attend the meeting of the Opposition parties. Leaders of 23 parties are attending the meeting to work out a strategy to counter BJP during the 2024 Lok Sabha elections.
In the year 2020, Enforcement Directorate (ED) seized properties worth Rs 8.60 cr belonging to Gautham Sigamani, DMK MP from Kallakurichi for contravening provisions of the Foreign Exchange Management Act (FEMA).
According to Enforcement Directorate, in March 2008, Sigamani made an overseas investment of USD 1,00,000 (Rs 41,57,225) in acquiring 2,45,000 shares of PT Excel Megindo, Jakarta and USD 55,000 (Rs 22,86,924) in Universal Business Ventures, United Arab Emirates without RBI approval and thereby contravened the provisions of Section 4 of FEMA for the acquisition of foreign security.
He also failed to repatriate profits amounting to Rs 7.05 crore earned by him from Universal Business Ventures, for the period from Financial Year 2008-09 to 2012-13 and continued to hold the same abroad till date in contravention of Section 4 read with Section 8 of FEMA,1999.
Further, according to ED, he also failed to repatriate the balance amount lying in the bank account of Universal Business Ventures to the tune of 604783 Dirhams equivalent to Rs 90.20 lakh as on December 31, 2012.
As per the provisions of section 37A of FEMA, if any foreign exchange, foreign security or any immovable property situated outside India is suspected to have been held in contravention of section 4 of FEMA, ED is empowered to seize value equivalent situated within India of such foreign exchange, foreign security or immovable property. Accordingly, immovable properties in the form of agricultural lands, commercial and residential buildings, etc in Tamil Nadu and movable properties in the form of balances in bank accounts and shares totalling Rs 8.6 crore held by Sigamani have been seized by the Directorate under the provisions of Section 37A of FEMA, according to ED sources.