The Tamil Nadu government has ordered an investigation into two letters sent by the Directorate of Enforcement (ED) alleging serious corruption involving senior DMK leader and Minister for Municipal Administration and Water Supply (MAWS), KN Nehru.
According to official sources, the Directorate of Vigilance and Anti-Corruption (DVAC) has initiated a detailed inquiry into both communications addressed by the ED to the Director-General of Police (in-charge), G Venkatraman, with copies marked to Chief Secretary N Muruganandham. The ED had sought the registration of a First Information Report (FIR) and a comprehensive investigation into the alleged offences.
Sources indicated that upon receipt of the complaints, the DGP (in-charge) forwarded them to the State government for appropriate action. Following this, the government ordered a detailed inquiry, after which the DVAC formally launched an investigation into the allegations made by the ED. Officials said this process was in line with established procedures, wherein the DVAC first registers a preliminary inquiry and then proceeds to a detailed inquiry to ascertain the existence of a prima facie case before registering an FIR.
The ED is stated to have enclosed documents in support of its allegations, relating to irregularities in the award of contracts and recruitment processes in one of the departments. Officials said the DVAC would independently verify the facts through its own investigation before taking further steps, in keeping with standard operating procedures.
In one of the letters sent to the DGP in early December 2025, the ED alleged large-scale corruption in the award of contracts in the MAWS department. In a 258-page dossier, the agency reported to have uncovered evidence suggesting bribe collections amounting to ₹1,020 crore from contractors executing various projects. The findings were reportedly based on materials recovered during searches conducted in April 2025.
The ED is said to have shared documents, photographs, and WhatsApp chats retrieved from the mobile phones of individuals under suspicion, indicating that the actual extent of corruption could be significantly higher than the amount identified so far. The agency urged the State police to register a case and undertake a full-fledged investigation, citing evidence of manipulation in government tenders.
According to the ED, contractors were allegedly required to pay bribes ranging between 7.5% and 10% of the contract value as party funds through associates linked to KN Nehru. The alleged demands reportedly covered all categories of work, including community toilets, construction and repair of sanitation workers’ housing, sanitation outsourcing contracts, and water and lake-related projects. Sources further stated that additional bribes were allegedly collected at various stages of project clearance and bill processing, raising the total alleged kickbacks to between 20% and 25% of the contract value.
Officials said the material forming the basis of these allegations emerged during an ED probe into money laundering linked to a bank fraud case originally registered by the Central Bureau of Investigation (CBI). During searches conducted in Chennai, Tiruchi, and Coimbatore at locations associated with individuals close to Nehru, the ED reportedly found evidence pointing to widespread manipulation of MAWS tenders. Several documents and digital devices said to contain information on proceeds of crime were seized during these operations.
Although the Enforcement Case Information Report (ECIR) under which the searches were conducted was later closed or quashed, the ED reportedly maintained that the materials recovered, including digital communications and documents, contained incriminating evidence. These materials were subsequently shared with the appropriate authorities for further action.
Sources further said that in October 2025, the ED had written to the DGP highlighting alleged irregularities in the recruitment of engineers and planning officers in the MAWS department. Information relating to both sets of allegations was shared under Section 66(2) of the Prevention of Money Laundering Act (PMLA), and the decision to initiate a detailed inquiry was communicated to the ED.
Denying the allegations, Nehru stated that the ED had aligned itself with the Opposition and was acting out of political motives. He alleged that the agency was functioning as a tool of the BJP and engaging in a smear campaign against him, claiming that the actions were driven by an inability to accept the achievements of the Dravidian Model government.
Source: The Hindu
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