TN court orders attachment of Rs 110 cr deposits, allegedly belonging to ex-minister

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A special court for cases under the Prevention of Corruption Act ordered the attachment of fixed deposits of over Rs 110 crore, allegedly belonging to former Tamil Nadu Minister S.P. Velumani. The fixed deposits were in the names of the firms of his associates.

He was the minister for municipal administration, rural development, law, and implementation of special programmes in the AIADMK government led by Edappadi K. Palaniswami.

The Directorate of Vigilance and Anti Corruption (DVAC) police had registered an FIR against the former minister and 16 others following an order of the Madras High Court.

The DVAC had conducted raids at several places attached to the former minister on August 10 and 11 last year and seized several documents including fixed deposit receipts.

In January 2022, the DVAC had filed an application with the special court to attach two properties in the name of KCP infra Ltd, formerly KCP Engineers Pvt Ltd and Aalam Gold and Diamonds Pvt Ltd. The agency informed the court that huge deposits to the tune of Rs 109, 12, 20 and 174 crores were in the name of KCP Infra Ltd and Rs 1,81,000,00 in the name of Aalam Gold and Diamonds Private Ltd.

The DVAC also said that the amounts were suspected to be part of crime proceeds, alleged to have been committed by the former minister and his associates in awarding contracts in Chennai and Coimbatore corporations.

The agency said that on scrutiny of the bank accounts it was found that the money was kept in fixed deposits and it was necessary to freeze the accounts to avoid liquidation of these funds.

Special court judge J. Omprakash ordered an ad-interim attachment of the properties after hearing the arguments of both the sides.

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