ED Seizes Rs 14.21 Crore in Tamil Nadu Illegal Mining Scandal

The Directorate of Enforcement has attached properties worth Rs 14.21 crore in a case of illegal red earth mining involving DMK leader K Ponmudy and associates. The investigation revealed violations and substantial illicit gains.

The Directorate of Enforcement (ED) has provisionally attached immovable and movable properties worth Rs 14.21 crore in connection with an illegal red earth mining scandal in Tamil Nadu. The properties belong to family members and associates of K Ponmudy, a DMK leader and the state's higher education minister, the agency stated in a press release.

According to the ED, the investigation began following an FIR registered by the District Crime Branch, Villupuram under Sections of the IPC, 1860, and the Prevention of Corruption Act, 2018 against K. Ponmudi, P. Gautham Sigamani, and others. The findings reveal that between 2007 and 2010, when Ponmudy was the state’s Minister of Mines, he managed to allot five mining licences to his close associates, including his son.

These licences were used to illegally extract Red Earth worth Rs 25.7 crore beyond permitted limits. The proceeds from these operations were reportedly invested in an overseas entity. Earlier investigations in July 2023 led to the seizure of cash, foreign currency, and the freezing of fixed deposits totaling Rs 41.9 crore. The ED has identified and attached immovable and movable assets worth Rs 14.21 crore, and further investigation continues.