The Madras High Court, on Friday 20 February 2026, has directed the Directorate of Vigilance and Anti-Corruption (DVAC) to register a criminal case based on inputs from the Directorate of Enforcement (ED) alleging large-scale corruption in the Municipal Administration and Water Supply (MAWS) Department headed by Minister K.N. Nehru.
The direction was issued by a Division Bench comprising Chief Justice Manindra Mohan Shrivastava and Justice G. Arul Murugan while hearing writ petitions seeking registration of an FIR in the alleged cash-for-jobs and transfer-posting scam. The Bench had earlier reserved orders after hearing detailed submissions from all sides.
Pulling up the State over the delay in acting on the ED’s communication, the court held that the material already on record disclosed cognisable offences warranting immediate registration of a case.
“The details shared and materials available reveal that those candidates got selected pursuant to the alleged transactions. And when a large-scale corruption stated to have happened involving several hundred crores of rupees, we find that source material is sufficient enough disclosing the commission of a cognisable offence for the purpose of registering a case,” the court observed.
The Bench noted that the ED had, on 27 October 2025, shared detailed source information with the State under Section 66(2) of the Prevention of Money Laundering Act (PMLA), along with voluminous supporting material.
“It was for the State to register a case on the detailed information shared by the Enforcement Directorate…and they could have thereafter concluded a detailed investigation to unravel the truth and bring the culprits to book,” the court said.
Rejecting the State’s stand that a preliminary or detailed inquiry should precede FIR registration, the court clarified that the ED’s communication could not be treated as a mere complaint.
“It is not a case where the authorities have received a bare complaint…it is a detailed source information provided by the Enforcement Directorate with a voluminous set of evidence…disclosing a cognisable offence,” the Bench held.
Since the State had already entrusted the matter to the Vigilance Department, the court said it was appropriate for the DVAC to proceed and accordingly directed the agency to register a case based on the ED’s 27 October 2025 communication, conduct a detailed and expeditious investigation, and take further action in accordance with law. A copy of the detailed judgment is awaited.
Earlier Proceedings
During the earlier hearing, senior counsel NR Elango, appearing for the DVAC, had assured the court of a “proper and full-fledged inquiry” and stated that the agency had already commenced a “detailed inquiry” under the Vigilance Manual. He had argued that the materials shared by the writ petitioners could not be treated as fresh first information and that an FIR should await the outcome of the inquiry.
Senior counsel V. Raghavachari, appearing for AIADMK Rajya Sabha MP I.S. Inbadurai, had relied on Supreme Court precedents to contend that the DVAC was duty-bound to register an FIR once cognisable offences were disclosed.
ED Special Public Prosecutor N. Ramesh had told the court that the agency had shared not merely inputs but evidence running into 232 pages clearly demonstrating the commission of cognisable offences.
Advocate General PS Raman, however, had argued that the ED had gathered the materials during a search and seizure operation in April 2025 in connection with a bank fraud case and pointed out that a Division Bench had on 24 July 2025 quashed the Enforcement Case Information Report in that matter. He had submitted that the State had acted promptly by forwarding the ED’s communication to the DVAC, which had begun a detailed inquiry.
The Chief Justice had also expressed displeasure that the first writ petitioner, K. Athinarayanan, had not disclosed his antecedents despite facing multiple criminal cases, including one for attempt to murder.
Allegations by ED
According to the ED, its investigation uncovered digital material suggesting that bribes were allegedly collected in exchange for favourable transfers and postings of engineers and other officials in the MAWS Department. The agency is stated to have traced hundreds of transfer and posting orders from electronic devices seized from associates, with alleged bribes ranging from lakhs to crores per posting.
The ED also flagged alleged irregularities in the award of municipal contracts, claiming that kickbacks were collected as a percentage of contract values and that the proceeds were routed through a network of associates.
With the High Court’s direction, the DVAC is now required to formally register a case and proceed with a detailed probe into the allegations.
Annamalai Welcomes Decision
BJP leader Annamalai welcomed the decision. On his X handle, he wrote, “We welcome the order of the Hon’ble Madras High Court directing the registration of an FIR against Minister Thiru. K.N. Nehru in the ₹888 crore bribery case related to appointments in the Municipal Administration and Water Supply Department, which is under his portfolio. In October last year, the Enforcement Directorate had written to the Chief Secretary of Tamil Nadu, the Director General of Police, Tamil Nadu, and the Tamil Nadu Vigilance and Anti-Corruption Department, strongly urging them to register an FIR against Minister Thiru. K.N. Nehru in this ₹888 crore corruption case. Similarly, in December last year, the ED had again demanded the registration of a case against Minister Nehru, stating that approximately ₹1,020 crore in bribery and corruption had taken place in the awarding of contracts in the Municipal Administration and Water Supply Department. In addition to this, in January this year, the Enforcement Directorate sent evidence for the third time, stating that ₹365.87 crore in bribery had occurred in the same department in exchange for providing job transfers. However, the DMK government has kept all three letters pending without taking any action for so many months. Even after the Enforcement Directorate sent letters with clear evidence, Chief Minister Thiru @mkstalin did not register a case against Minister Thiru. K.N. Nehru. What answer is he going to give now? If, under the DMK government, corruption amounting to approximately ₹2,300 crore has taken place in just one department in a single year, what is the state of Tamil Nadu? Is he going to claim that all these corrupt acts happened without the knowledge of Chief Minister Thiru @mkstalin?
Immediately, a case must be registered against Minister Thiru. K.N. Nehru in the ₹1,020 crore bribery case related to the awarding of work contracts that the Enforcement Directorate wrote about in December last year, as well as in the ₹365.87 crore job transfer bribery case. Otherwise, the people will inevitably conclude that all these corrupt acts took place with the full knowledge of Chief Minister Thiru @mkstalin.”
Source: Bar And Bench
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