Chennai, Dec 1: In a significant development, Tamil Nadu Higher Education Minister K Ponmudy found himself facing the Enforcement Directorate (ED) for the second time in the past four months. The senior DMK leader and minister were summoned for questioning regarding an ongoing investigation into alleged money laundering, particularly linked to illegal sand mining activities.This probe, initiated by the ED, gained momentum in July when the agency conducted searches on properties associated with Ponmudy and his son, Gautham Sigamani—an MP. The focus of the investigation revolves around the purchase and sale of an Indonesian firm for a staggering Rs. 100 crore. The ED has raised concerns about hawala transactions associated with these financial dealings.
According to the ED’s findings, the family’s involvement in the purchase of the Indonesian company, initially valued at Rs. 41.57 lakh, raised suspicions. The company was later sold for over Rs. 100 crore in 2022. The agency suspects that substantial amounts of cash were transferred through hawala channels, funneling funds into the acquisition of these overseas entities.
During the search operations in July, the ED unearthed unaccounted cash amounting to Rs. 81.7 lakh and unexplained foreign currency equivalent to Rs. 13 lakhs. Additionally, the agency froze an amount of Rs. 41.9 crore, identified as direct proceeds of the alleged crime, under Section 17 (1A) of the Prevention of Money Laundering Act (PMLA). This freeze was executed as the funds were held in the form of a Fixed Deposit.
The ED’s scrutiny extends to Ponmudy’s tenure as the Minister of Mines in 2007, with a specific focus on the issuance of red sand mining licenses at five locations. The agency’s investigation has been meticulous, revealing a complex web of financial transactions and suspected illegal activities.