ED Uncovers Tamil Nadu Minister's Transfer-Posting Racket During Separate Raids
The Enforcement Directorate has made serious allegations against Tamil Nadu's Municipal Administration and Water Supply minister, K N Nehru. The central agency claims it discovered an extensive corruption network during raids conducted in a different case.
Evidence Emerges from Unrelated Searches
According to ED documents, the evidence surfaced during search operations in April 2025. These searches targeted premises linked to Nehru's relatives and close associates across Chennai, Tiruchy, and Coimbatore. Initially, the raids focused on a money laundering probe connected to a CBI-registered bank fraud case.
The agency states that digital material seized during these operations revealed completely different offences. While examining documents, digital devices, and records, investigators found evidence pointing to corruption in government transfers and postings.
Detailed Allegations of Bribery System
The ED's communication to Tamil Nadu authorities describes what it calls an organized system of corruption. The agency alleges that Nehru and his associates collected bribes for transferring and posting government officers and engineers within the MAWS department.
Digital evidence including photos, WhatsApp chats, and documents reportedly shows numerous instances of bribe collection. The amounts ranged from Rs 7 lakh to Rs 1 crore depending on the specific post and location of posting.
Investigators claim to have identified approximately 340 officers and engineers whose transfer or posting orders appeared in phones belonging to Nehru's associates. The ED considers this direct evidence of bribe collection activities.
Money Laundering Trail Uncovered
Beyond the alleged bribe-taking, the ED traced how the proceeds were allegedly laundered. In a section titled "Summary of Direct Evidence of Money Laundering," the agency attributes Rs 365.87 crore in laundered funds to Nehru, his family, and close associates.
The ED emphasizes that this transfer-posting racket came to light incidentally during investigations of a different case. The original bank fraud case that triggered the searches was later closed after loan repayment through a one-time settlement.
Legal Pressure on State Authorities
In a communication dated January 14, the ED pressed Tamil Nadu authorities to register a criminal case immediately. The agency sent letters to the Director General of Police, the Director of the Directorate of Vigilance and Anti-Corruption, and the Chief Secretary of Tamil Nadu.
The ED forwarded material under section 66(2) of the Prevention of Money Laundering Act, noting that it can only investigate money laundering when a scheduled offence is registered by a law enforcement agency.
The agency quoted extensively from the Supreme Court's 2022 judgment in Vijay Madanlal Choudhary v Union of India. It warned that failure to register an FIR when actionable evidence is provided could amount to knowingly assisting accused persons in generating proceeds of crime.
Minister's Response and Political Context
Minister K N Nehru responded to the allegations by stating he did not wish to comment at this stage. "All these matters are under inquiry. I do not wish to comment at this stage, as I do not yet have clarity on the details," Nehru told The Indian Express.
This development occurs amid ongoing tensions between central investigative agencies and Opposition-ruled states. Tamil Nadu's ruling party has repeatedly accused the ED of political targeting. Last year's searches already sparked sharp reactions from state leaders who questioned their timing and intent.
The ED maintains that the evidence of corruption stands independently, regardless of the original case's closure. The agency has transferred the evidence to relevant cases and urged state authorities to initiate necessary criminal action through FIR registration.
