The Directorate of Enforcement (ED) on Friday said that it had found evidences of a deep-rooted and systemic corruption network within the Municipal Administration and Water supply Department (MAWS) of Tamil Nadu.
In a release, the Central agency also claimed to have found evidence suggesting involvement of key individuals, including MP Arun Nehru and N. Ravichandran (family members of Minister K.N. Nehru) in orchestrating the diversion of funds.
Officials of the ED had conducted searches across Chennai, Tiruchi and Coimbatore on April 7, 2025, under provisions of the Prevention of Money Laundering Act (PMLA), 2002. Fifteen premises associated with M/s Truedom EPC India Pvt Ltd. and its key personnel were searched.
The agency had initiated an investigation based on an FIR registered by the Central Bureau of Investigation against M/s Truedom EPC India Pvt Ltd. and others for alleged bank fraud involving the misappropriation of loan funds worth ₹30 crore sanctioned by the Indian Overseas Bank.
The probe revealed that M/s Truedom EPC India Pvt Ltd — a shell entity with no wind energy experience — was created solely to divert loan funds under the guise of a 100.8-MW windmill project, the release added.
The funds were immediately routed through associated shell entities with no real activity. After layering, substantial amounts were transferred to M/s True Value Homes Pvt Ltd and M/s TVH Energy Resources Pvt Ltd to settle existing liabilities.
The set-up was designed to mask the diversion and no repayment effort was made before the loan was declared fraudulent. During the searches, incriminating documents, digital records, and property documents were seized, indicating the layering and siphoning-off of funds.
The findings revealed pre-fixed commissions for awarding tenders, rigged procurement processes, and a well-organised nexus of officials, middlemen, and politically linked individuals.
The investigation also uncovered a pattern of illegitimate funds being layered and siphoned off through interconnected entities, suggesting the existence of a broader financial and administrative cartel operating across the tate. “Huge amount of hawala transactions have been executed across the State for placing illegitimate funds to intended purposes. Evidences of bribe collection for transfer/posting of officials of the MAWS Department have also been found,” the release said.
The ED has also identified assets and properties acquired using proceeds of crime, and is quantifying and attaching these under provisions of the PMLA, the release added.
Published – April 12, 2025 12:10 am IST
