13-05-2025
- Business
- New Indian Express
Shell firms used to bribe ex-minister Vaithilingam, ED tells DVAC
CHENNAI: The Enforcement Directorate (ED), in a recent letter written to the Directorate of Vigilance and Anti-Corruption (DVAC), has shared details regarding an alleged money laundering operation facilitated by Shriram Properties and its managing director through shell companies in connivance with former AIADMK housing minister R Vaithilingam and his sons for getting approval for a housing project in 2015-16.
The ED's probe into the Rs 27.9 crore bribe allegedly paid by Shriram Properties to Vaithilingam has found that the amount was generated by a group company through dubious cash transactions disguised as payments received from 36 scrap vendors, sources said.
The ED's communication to the DVAC has been sent under Section 66(2) of the Prevention of Money Laundering Act (PMLA) which deals with sharing of information between investigation agencies.
ED has sent detailed evidence with the letter, including the order confirming attachment of properties worth Rs 100 crore in the case, sources said, adding that it may be to preempt the DVAC from filing a closure report in the case. However, DVAC officials declined to comment on the development.
'Bribe paid to get CMDA nod for 1.4K units'
ED had initiated the probe under PMLA after DVAC had filed two FIRs against the sitting Orathanadu MLA and his sons in September 2024. This was based on a complaint that Shriram Properties had paid the bribe in 2015-16 through linked firms to a company owned by the former minister's son.
The money was allegedly paid to facilitate Chennai Metropolitan Development Authority (CMDA)'s planning permission for building 1,453 apartment units at Perungalathur in Chennai. Shriram Properties and a few other related companies are also accused in the DVAC FIR.
