Chennai, Aug 28:
The Enforcement Directorate (ED) has arrested businessman and film producer C. Alagappan and three members of his family in a money-laundering investigation linked to allegations that actress-politician Gautami Tadimalla was cheated of properties and funds worth several crore rupees.
Those arrested are Alagappan, 66, his wife Nachal, 60, son Siva, 35, and daughter-in-law Aarthi, 33.
While Aarthi was granted bail by a court as she has an infant child to care for, the other three were remanded in judicial custody and lodged in Puzhal Central Prison.
The ED action followed a series of complaints and FIRs registered in Tamil Nadu over allegations that Alagappan, a long-time family friend of Gautami, had misused powers of attorney entrusted to him for managing her properties.
According to the complaint, Gautami owned a plot in Kancheepuram district valued at around Rs 20 crore and had planned to sell it to meet expenses related to her treatment and her daughter’s future education.
She alleged that after discussions regarding the sale, Alagappan obtained a General Power of Attorney in his name. Gautami subsequently alleged that he informed her that the property had been sold for only Rs 6 crore and that the proceeds were misappropriated.
The allegations also involve properties in Tiruvallur, Tiruvannamalai, Ramanathapuram and Chennai. Gautami has alleged that several properties were transferred, purchased or partitioned without her knowledge and that substantial sums were allegedly withdrawn or diverted from her bank accounts using powers of attorney and other documents.
Following her complaint, cases were registered by different police agencies. The Central Crime Branch of the Chennai City Police took up the investigation, and Alagappan and three family members were arrested in late 2023 after they were traced to Thrissur in Kerala.
The ED later registered a money-laundering case based on around seven FIRs connected with the alleged property fraud.
In June, the central agency conducted searches at about six locations in Chennai and Madurai linked to Alagappan and his family. Gautami was also summoned by the ED and reportedly provided details regarding documents and financial transactions recovered during the investigation.
The latest arrests mark a major development in the case, with investigators now focusing on tracing the alleged money trail, examining transactions connected to the disputed properties and determining the role of each accused.
Gautami had resigned from the BJP in October 2023, alleging a lack of support in pursuing her complaint. She later joined the AIADMK in February 2024 as Deputy Propaganda Secretary before resigning from the party and active politics a few months later.
The ED investigation into the alleged laundering of proceeds arising from the property transactions is continuing.

