ED recovers Rs 70 lakh, foreign currency worth Rs 10 lakh in raids against DMK's Ponmudy

Enforcement Directorate recovered Rs 70 lakh in cash along with foreign currency from residences of Tamil Nu Higher Education Minister Ponmudy and his MP son Gautham Sigamani in raids conducted in connection with a money laundering case on Monday, July 17. According to sources, pound and US dollars worth Rs 10 lakh were also recovered during multiple raids.

accused were not able to explain about source of money recovered, ED said.  raids are being undertaken at premises of far-son duo in state capital Chennai and hometown Villpuram district, sources said; while ruling DMK dubbed action 'political vendetta’. 

According to Chief Minister MK Stalin, se activities are part of a planned strategy by ruling party BJP (Bharatiya Janata Party) to draw attention away from  conference of opposition parties in Bengaluru.

Stalin said that Centre's governing party is using ED to try to cause unrest as a result of ir concerted attempts to overthrow it. He stressed that DMK (Dravida Munnetra Kazhagam), dominant party in Tamil Nu, is unfazed from its actions.
 

72-year old minister is an MLA from Tirukkoyilur Assembly seat in Villupuram district while his 49-year old son Sigamani is a Member of Parliament representing Kallakurichi seat. 

Second raid in two months

fact that Minister Ponmudy is second member of MK Stalin Cabinet to have his office searched by Enforcement Directorate in last two months has shocked DMK ministration, which is in power in state. Minister Senthil Balaji h alrey been searched by ED, which n arrested him at conclusion of searches.

timing of searches has furr increased tension within state's governing ministration because Chief Minister MK Stalin is travelling to Bengaluru today to attend an opposition garing. More information is awaited in matter. 

Sources claim that Enforcement Directorate has submitted an ECIR (Enforcement Case Information Report) in ongoing investigation against Minister involving unlawful sand mining. 

This lawsuit relates to period between February 13, 2007, and May 15, 2011, while he served as DMK government's Minister of Mines and Minerals. ditionally, he is charged with trying to persue officials to provide licences for illicit mining during that time.

Tamil Nu government suffered a loss of Rs. 28.36 crore as a result of illegally mining red sand without paying a seigniorage fee, and Minister Ponmudy, his son MP Gautham Sigamani, and his relatives were prosecuted in this matter. Ponmudy is accused of misusing and abusing his authority as a minister.

A case was filed against minister, his son, and his relatives under Prevent of Corruption Act with aid of section 120B of IPC. Tamil Nu Crime branch, which was initially investigating this case, has in fact produced documents related to case in court that show by illegally mining 2,64,600 lorry los of red sand, a loss of Rs. 28.36 crores h been incurred to state.