CHENNAI: Fixed deposit worth Rs 41.9 crore has been frozen by the Enforcement Directorate (ED) during searches carried out at the premises of Tamil Nadu Higher Education Minister K Ponmudy.
The ED seized Rs 81.7 lakh in cash and foreign currency to the tune of Rs 13 lakh during the searches held in seven locations linked to Ponmudy and his son Gowtham Sigamani on Monday in connection with an alleged red sand mining case.
The case relates to the alleged issuance of red sand mining licenses at five locations illegally by Ponmudy when he was the Minister for Mines when the DMK government was in power in 2006 and 2011. The licenses were issued in the names of his son, relatives and benami holders.
The seizures by the central agency could spell trouble for the minister. He was grilled for nearly 20 hours beginning Monday.
Ponmudy and his son Gowtham Sigamani were let off by the agency at 3.30 am on Tuesday. They have been asked to reappear for further questioning after 12 hours.
The visibly tired 72-year-old minister and his son appeared before the ED sleuths around 4 pm on Tuesday.
According to ED officials, the proceeds obtained from illegal mining were deposited in benami accounts and were layered through multiple transactions and accounts.
"Two overseas entities, namely PT Excel Meg Indo of Indonesia and Universal Business Ventures FZE in the UAE, were acquired.
The Indonesian company was purchased for a nominal amount of Rs 41.57 lakh and was later sold for over Rs 100 crore in 2022.
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 Meg Indo and USD 55,000 (Rs 22,86,924) in Universal Business Ventures without RBI approval and thereby contravened the provisions of FEMA (Foreign Exchange Management Act) for the acquisition of foreign security.
The Enforcement Directorate claimed that it has identified a trail of illegal proceeds derived from these illegal activities, being used to acquire properties, and companies and channelling into other investments.
Ponmudy represents the Tirukkoyilur Assembly segment in Villupuram district. His 49-year-old son is a Member of Parliament representing Kallakurichi constituency.