CHENNAI: The Enforcement Directorate (ED), in a recent letter written to the Directorate of Vigilance and Anti-Corruption (DVAC), has shared details regarding an alleged money laundering operation facilitated by Shriram Properties and its managing director through shell companies in connivance with former AIADMK housing minister R Vaithilingam and his sons for getting approval for a housing project in 2015-16.
The ED’s probe into the Rs 27.9 crore bribe allegedly paid by Shriram Properties to Vaithilingam has found that the amount was generated by a group company through dubious cash transactions disguised as payments received from 36 scrap vendors, DVAC sources said.
The ED’s communication to the DVAC has been sent under Section 66(2) of the Prevention of Money Laundering Act (PMLA) which deals with sharing of information between investigation agencies.
ED has sent detailed evidence with the letter, including the order confirming attachment of properties worth Rs 100 crore in the case, sources said, adding that it may be to preempt the DVAC from filing a closure report in the case. However, DVAC officials declined to comment on the development.
‘Bribe paid to get CMDA nod for 1.4K units’
ED had initiated the probe under PMLA after DVAC had filed two FIRs against the sitting Orathanadu MLA and his sons in September 2024. This was based on a complaint that Shriram Properties had paid the bribe in 2015-16 through linked firms to a company owned by the former minister’s son.
The money was allegedly paid to facilitate Chennai Metropolitan Development Authority (CMDA)’s planning permission for building 1,453 apartment units at Perungalathur in Chennai. Shriram Properties and a few other related companies are also accused in the DVAC FIR.
According to sources, ED’s money trail investigation found that the `27.9 crore bribe was generated by a group company disguised as payments received from 36 scrap vendors. This was then transferred to Muthammal Estates Pvt Ltd (MEPL), a firm owned by Vaithilingam’s sons, through another company - Bharat Coal Chemicals Ltd (BCCL).
Though both parties claimed that the money was given as advance to procure land by MEPL for BCCL, neither was any land offered nor was the money returned before DVAC filed the FIR in September 2024. The transfer was recorded as an unsecured loan by BCCL in its account book in FY16 but changed to advance from customers the next year. But, this change was not backed by any formal board approval or communication, ED’s probe said.
Further, ED found that 36 scrap vendors had paid money to BCCL as advance for buying scrap, but there was no agreement available regarding this transaction. Though ED tried to summon these vendors for recording their statements, they were not found, indicating that they were shell entities to channelise black money. Using statements taken from a senior CMDA official, ED has claimed to have established that the bribe was indeed paid to get the minister’s approval for clearances, sources said.
TIME liNE
Bribes paid in FY16
Shriram properties got CMDA permission for realty project in Feb 2016
DVAC FIR in Sept 2024
ED attaches Rs 100 crore worth properties of ex-minister in Oct 2024