In a significant move, the Enforcement Directorate (ED) has provisionally attached immovable and movable properties worth over Rs 14 crore linked to senior Dravida Munnetra Kazhagam (DMK) leader and Higher Education Minister K Ponmudy. The crackdown is part of an ongoing investigation into illegal red earth mining activities.
The assets attached include fixed deposits and bank balances amounting to Rs 8.74 crore held by M/s Confluence, an entity associated with Ponmudyās daughter-in-law. Additionally, immovable properties valued at Rs 5.7 crore were attached, held in the name of Gautham Sigamaniās brother-in-law KS Raja Mahendran and his related entities. In total, properties worth Rs 14.21 crore were provisionally attached, the ED stated on Friday.
The investigation, initiated on the basis of an FIR registered by the Tamil Nadu police under various sections of the Indian Penal Code (IPC) and the Prevention of Corruption Act, 2018, implicates Ponmudy, his son and former Lok Sabha member P Gautham Sigamani, and others.
According to the ED, between 2007 and 2010, Ponmudy, then the State Minister of Mines, allegedly allocated five mining licenses to Gautham Sigamani, KS Rajamahendran, and Jayachandran. These individuals admitted to acting on behalf of Gautham Sigamani to quarry red earth on patta lands.
The investigation revealed that red earth was extracted illegally beyond permitted limits, resulting in a loss of Rs 25.7 crore. The ED claims that the proceeds from the illegal mining were invested in overseas entities.
Search operations conducted in July last year led to the seizure of Rs 81.42 lakh in cash and foreign currency, primarily British pounds, equivalent to approximately Rs 13 lakh. Additionally, fixed deposits amounting to Rs 41.9 crore were seized.