A significant tax evasion case involving a local DMK leader has come to light following coordinated raids by multiple central agencies last week. Enforcement Directorate (ED) officials have stated that seized documents indicate a DMK functionary from Bodinayakanur evaded taxes exceeding ₹100 crore by selling cardamom in northern states without proper documentation.
The case centers on Shankar, a councillor for the 29th ward in Bodinayakanur and a member of the DMK’s State Executive Committee, who also runs a cardamom trading company. His wife, Raj Rajeswari, is the chairperson of the Bodinayakanur Municipality in Theni district.
The investigation began after a complaint was filed against Shankar for alleged tax evasion connected to the shipment of several tons of cardamom to northern states. Based on this, a multi-agency operation was launched on 6 December 2025, with officials from the Enforcement Directorate (ED), Income Tax Department, and Commercial Tax Department conducting simultaneous searches at his warehouse, office, and residence.
During the four-day operation, which involved around 50 officials, various financial and trade-related documents were seized. Investigators broke open the lock of Shankar’s cardamom warehouse near the Bodi railway bridge to access evidence.
A key development in the probe occurred after Shankar had failed to appear for a prior inquiry despite receiving a summons from the Income Tax Department regarding the tax evasion complaints. Following the raids, Shankar, Raj Rajeswari, and their son Lokesh—who were initially unreachable—returned and were questioned by officials.
The investigation has expanded to include associates connected to Shankar’s business. More than 20 individuals have been interrogated, including Vedajeyaraj, the proprietor of a private school and a close associate of Shankar; Councillor Murugesan; former municipal chairman Palanirajan (who belongs to the OPS faction); and Shankar’s driver, Vadivelu.
Officials are currently examining a wide range of evidence, including details of bank transactions, money transfers, and the companies to which cardamom was supplied over the past seven months.
ED officials have indicated that the evidence collected so far is substantial. “Shankar has evaded taxes exceeding ₹100 crore,” stated an official.
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