ED searches under way at residences, premises linked to T.N. Minister Ponmudy in Chennai, Villupuram

ED searches DMK heavyweight K. Ponmudy's premises in Chennai & Villupuram in connection with money laundering case. Searches conducted at 9 places, including his residence, son's residence & Surya Educational Trust. Allegations of illegal quarrying of red sand & violation of FEMA.

The Directorate of Enforcement (ED) on Monday, July 17, 2023, launched searches at residences and premises linked to DMK heavyweight and Minister for Higher Education K. Ponmudy in Chennai and Villupuram, in connection with an alleged money laundering case. Mr. Ponmudy is the second T.N. Minister to come under the radar of the ED; Minister V. Senthilbalaji was arrested by the agency, also in a money-laundering case, on June 14, 2023. 

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In Chennai, officers of the ED, accompanied by armed personnel of the Central Reserve Police Force (CRPF) arrived at Mr. Ponmudy’s house in Saidapet at around 7 a.m. and began inquiries with the Minister and his family members inside. Mr. Ponmudy’s supporters and lawyers gathered outside the house, even while CRPF personnel stood guard around the house. 

A team of the ED simultaneously also arrived at the Minister’s residence in Shanmugapuram in Villupuram. The Minister and his family were not present at the time of the searches. The team contacted the Minister’s staff and collected the keys to the house, and searched the premises, with heavy police protection.

Sources said the searches were also carried out at the premises of Surya Educational Trust in Vikravandi and the residence of his son and Kallakurichi MP, Gautham Sigamani in Villupuram. A total of nine places are being searched.

Sources said the present investigation is linked to a corruption case booked against Mr. Ponmudy by the Directorate of Vigilance and Anti-Corruption (DVAC) in 2012. The DVAC case is still pending before a special court. The case relates to alleged irregularities when Mr. Ponmudy was the Minister for Mines and Mineral Resources between 2007 and 2011, and obtained quarry licenses in favour of his son, friends and relatives. Mr. Sigamani is the second accused person in the case

 The allegations state that the Minister, along with other accused persons quarried 2,64,644 lorry excess loads of red sand. Mr. Ponmudy is accused of violating quarry license conditions, thereby causing a loss of ₹28 crore to the public exchequer by not paying fees for the red sand excavated beyond permissible limits, sources said.