The Enforcement Directorate, Chennai, on Friday provisionally attached immovable and movable properties worth Rs. 14.21 crore allegedly belonging to family members and associates of Tamil Nadu Higher Education Minister K Ponmudy and his son P Gautham Sigamani, a former Lok Sabha MP. The properties were attached in connection with a case of illegal red earth mining in Tamil Nadu. The alleged illegal mining took place when Ponmudy was a Minister in the erstwhile M Karunanidhi Cabinet.
Both Ponmudy and Sigamani were in July last year questioned in connection with the case and their houses also searched. The ED had initiated investigation against them on the basis of FIR registered under various sections of IPC and the Prevention of Corruption Act.
“The ED investigation revealed that between 2007 and 2010, when Ponmudy was the Minister of Mines, he managed to allot five licenses in the names of Sigamani, the latter’s brother in law K S Rajamahendran and one Jayachandran, who admitted to acting on behalf of Sigamani for quarrying red earth in Patta Lands. The investigation revealed that the red earth was extracted illegally beyond the permitted limits to the tune of Rs. 25.7 crore. The investigation also revealed that the sale proceeds were invested in the overseas entity,” the agency said.
During last year’s searches, unaccounted cash of Rs. 81.42 lakh, along with unexplained foreign currency primarily in British pounds equivalent to approximately Rs. 13 lakh, were seized. It also led to freezing of Rs. 41.9 crore fixed deposits.
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“Further, immovable properties held in the name of K S Raja Mahendran and his entities totally valued Rs. 5.47 crore and movable properties held in the name of M/s. Confluence (entity belonging to the wife of Sigamani) lying in the form of Bank FDs and Bank Balance totally valued Rs. 8.74 rore, aggregating to Rs. 14.21 crore have been identified and provisionally attached,” the ED said.
