The KN Nehru MAWS corruption scandal has been making the waves across the country, but the local Tamil media seem to be brushing it under the carpet for one main reason – the Enforcement Directorate (ED) has, for the first time during his tenure, named Tamil Nadu Chief Minister MK Stalin as a “direct beneficiary” in its dossier.
According to a 258-page communication sent by the ED to the Tamil Nadu government under Section 66(2) of the Prevention of Money Laundering Act (PMLA), the central agency alleged that at least ₹1,020 crore was collected through widespread tender manipulation in the MAWS department. The letter urged the state police to register an FIR to enable further PMLA investigation.
Stalin Named as “Direct Beneficiary”
On page 51 of the dossier, the ED stated that by virtue of being DMK president, Chief Minister Stalin is a “direct beneficiary” of the bribes allegedly collected as “party funds.” The agency also named Deputy Chief Minister Udhayanidhi Stalin in the same context.
Officials cited digital evidence recovered during April 2025 searches on Municipal Administration Minister KN Nehru, his relatives and associates. The ED claimed contractors were allegedly forced to pay 7.5–10% of contract value as kickbacks.
Notably, the agency clarified that it has not indicated any probe into the personal assets of either Stalin or Udhayanidhi in the present dossier.
Link to Key Associate
The ED communication also highlighted the role of Kavi Prasad, described as a close associate of Nehru’s family, particularly his brother KN Ravichandran of True Value Homes (TVH).
Investigators alleged that Kavi Prasad functioned as a key intermediary connecting senior IAS and IPS officers, MLAs, and the Chief Minister’s Office (CMO). The agency cited chats and call records purportedly showing senior officials addressing him with honorifics such as “Respected Sir” and “Chief.”
According to the ED, some officers allegedly approached Kavi Prasad for transfers, postings and tender-related favours, and sensitive intelligence was also shared with him – actions the agency termed a violation of service conduct rules.
Allegations Around Official Events
The dossier further alleged that bribes were collected from MAWS engineers to organise official programmes of the Chief Minister. One cited instance claimed ₹1 lakh each was collected from 43 engineers for a function in Tirunelveli district, based on recovered chat material.
Sources close to Kavi Prasad had earlier denied the ED’s allegations, describing the case as politically motivated.
How ED Says It Found the Trail
The agency stated the material emerged from digital devices seized during searches linked to a PMLA probe that originated from a CBI bank fraud case involving TVH. Although the bank fraud case was later quashed by the Madras High Court, the ED said the digital evidence led to separate corruption findings.
High Court Pushes Action
The issue has gained fresh legal traction after the Madras High Court on 20 February 2026 directed the Directorate of Vigilance and Anti-Corruption (DVAC) to examine the ED communication and register an FIR.
The court observed that the material shared by the ED was not a mere complaint but “detailed source information disclosing cognisable offences.”
Political Ripples
Government sources indicated that soon after details of the ED letter surfaced in December 2025, Stalin reviewed the matter with senior police officials. He subsequently cautioned party functionaries about the possible “use” of central agencies against the DMK.
With the High Court now pushing for formal action, the ED’s naming of the sitting Chief Minister, even in an alleged beneficiary capacity, marks a politically sensitive moment in Tamil Nadu’s pre-election landscape.
Source: Sid Prabhakar Medium Page
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