Tender scam: DVAC raids 30 places linked to former minister Nehru

The ED had said that at least Rs 1,020 crore was collected as bribes and commissions through manipulation of contracts.
A large number of DMK functionaries sat outside former minister KN Nehru’s residence during the search in Tiruchy on Saturday
A large number of DMK functionaries sat outside former minister KN Nehru’s residence during the search in Tiruchy on Saturday photo| M K Ashok Kumar
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TIRUCHY/CHENNAI/COIMBATORE/TIRUPPUR/ERODE: The Directorate of Vigilance and Anti-Corruption (DVAC) searched 30 locations across five cities on Saturday in a case registered over alleged irregularities in tenders awarded by the Municipal Administration and Water Supply (MAWS) department during the previous DMK regime. Properties linked to former minister and Tiruchy West MLA KN Nehru and his brother were among those searched.

Sources said the raids were based on a communication sent by the Enforcement Directorate (ED) to state authorities on December 3, 2025, alleging large-scale manipulation of MAWS tenders. The ED had said that at least Rs 1,020 crore was collected as bribes and commissions through manipulation of contracts.

The searches in Chennai, Coimbatore, Tiruchy, Erode, and Tiruppur resulted in the seizure of 241 documents related to the alleged irregularities and electronic evidence, DVAC said in a release.

The case invokes provisions relating to criminal conspiracy, criminal breach of trust and cheating under the IPC and Bharatiya Nyaya Sanhita, besides Sections 7, 7A, 8, 9, 12 and 13 of the Prevention of Corruption Act.

The December communication from ED was the second of three reports the directorate had sent regarding alleged irregularities in the MAWS department. Its first report concerned alleged bribes in recruitment, based on which the Madras High Court directed the DVAC in February to register a First Information Report. The agency registered the case in June, following which the court temporarily restrained further proceedings.

Will face case legally and come out clean: Nehru

Nehru’s review petition against the court’s direction has been heard and orders are reserved. The ED’s third communication in January pertained to alleged corruption in transfers and postings of MAWS officials. In Tiruchy, DVAC officials searched Nehru’s residence on Thillai Nagar 5th Cross Road from around 8 am to 3 pm. His former personal assistant Manikandan’s residence at Periyar Nagar in Srirangam was also searched.

Speaking after the search, Nehru said officials had taken a copy of what he described as a “routine” file from his residence and a slip relating to income and expenditure accounts from his brother’s Chennai office. He denied having spoken to anyone regarding tenders and termed the case a political vendetta. “Politically speaking, they are attempting to threaten us. We will face the case legally and come out clean,” he said.

A large number of DMK functionaries gathered outside Nehru’s residence during the search. Former minister Anbil Mahesh Poyyamozhi, Manachanallur MLA S Kathiravan and Tiruchy Mayor Mu Anbalagan were among those present.

In Coimbatore, DVAC officials searched a real-estate office owned by Nehru’s brother KN Manivannan at an apartment complex near Ramanathapuram on Trichy Road. A separate search was conducted at the Sungam residence of a former Coimbatore Corporation employee who headed its Town Planning Department. Sources said the searches there were linked to alleged irregularities in building and layout approvals.

DVAC sleuths also conducted searches in Tiruppur at the residence and office of R Velumani, a TN Water Supply and Drainage Board (TWAD Board) contractor, in Avinashi. The searches were conducted at his office, VR Water Infra Company, in Kaikattipudur and his house in Kamaraj Nagar. Velumani is reportedly a first-grade contractor with the TWAD Board. He is also said to be close to former AIADMK Minister SP Velumani and former DMK Minister KN Nehru. Similar searches were conducted at the office of a Raja construction firm in Kangeyam, as well as the residences of its owners.

In Erode, DVAC conducted surprise searches at the office of a private construction company on Perundurai Road and at the residence of its owner in Palayapalayam on Saturday. The construction company, P and C Projects, has undertaken construction projects for the state’s PWD, Erode Corporation and other government agencies. During the search, officials reportedly examined tender-related documents and records of its recent financial transactions.

DMK president MK Stalin condemned the searches as politically motivated and questioned their timing during the Assembly session. He alleged that the government was attempting to divert attention from other issues. DMK MP Kanimozhi Karunanidhi also condemned the action.

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