ED probes money laundering in sand mining business

ED launches probe into TN govt's sand mining biz; teams search 30+ sites, incl. offices/residences of contractors, officials. CAPF backs ED in investigation into suspected money laundering, GST evasion. Teams check receipts, quantum of sand mined, lorries that purchased sand. Searches halt operations at quarries, sand depots.

The Directorate of Enforcement on Tuesday launched an investigation into suspected money laundering in the sand mining business of the Tamil Nadu government.

Backed up by the Central Armed Police Force (CAPF), several teams of ED officials landed at sand quarrying sites and sales depots managed by the Water Resources Department across the State early in the morning.

Simultaneous searches were conducted at the offices/residences of sand contractors, including S. Ramachandran in Pudukottai and K. Rathinam in Dindigul, a few officials, and others associated with them. A team visited the office of the Engineer-in-Chief, Water Resources Organisation, at Chepauk in Chennai, sources said.

The ED is probing a money laundering angle emerging from alleged irregularities in the sand mining business, GST evasion in particular.

Though sand is sold online, the sources said investigators were following up on information that a huge quantity of sand was sold across the counter, involving cash that was not accounted for.

Investigators were checking whether receipts for payments issued to sand dealers or lorry operators who made purchases at sand depots in more than 15 locations close to riverbeds were genuine, the sources said.

According to police sources, the ED officials, accompanied by CAPF personnel, searched more than 30 locations in Tiruvallur, Kancheepuram, Vellore, Villupuram, Pudukottai and a few other districts.