The Tamil Nadu government has filed a case in the Madras High Court in protest against the summons issued by the Enforcement Directorate (ED) to 10 district collectors in connection with a sand mining scam.
The Tamil Nadu government’s Water Resources Department sells sand online through a reservation system. In this system, the government provides e-receipts to sand buyers. However, there were complaints that there were irregularities in sand sales, that sand was being sold illegally without following the proper procedures, and that this was leading to tax evasion worth crores of rupees.
Following these complaints, on September 12, 2023, ED officials conducted surprise raids at 34 locations, including the homes of businessman Ramachandran from Muthupet in Pudukottai district, T.R. Ratnakumar of Dindigul, his relative Govindan, sand quarry owner Karikalan, retired Public Works Department engineer Thilagam, and Chief Engineer Muthukrishnan of the Water Resources Department. These raids were conducted under the Prevention of Money Laundering Act.
The raids, which lasted for over two days, resulted in the seizure of unaccounted property documents worth crores of rupees from the homes of the sand quarry owners, Ratnakumar, Karikalan, and Water Resources Department officials. The ED also seized Rs.12.82 crore in cash and 1024 grams of gold jewelry worth Rs.56.86 lakh.
Following the raids, the ED summoned 10 district collectors, Muthukrishnan, and Thilagam to appear for questioning. In response, Muthukrishnan, the Chief Engineer of the Tamil Nadu Water Resources Department, appeared for questioning at the ED office in Nungambakkam in Chennai on Monday, November 21, 2023, with some important documents.
Meanwhile, the Tamil Nadu government has filed a case in the Madras High Court in protest against the summons issued to the district collectors. In the petition, the government argues that the ED does not have the authority to summon district collectors as the Mineral Act has not been included in the Prevention of Money Laundering Act. The petition also alleges that the ED is acting with the intention of harassing state government officials and disrupting government administration.
The Tamil Nadu government’s Chief Advocate R. Shanmugasundaram requested the judges S.S. Sundar and Sundar Mohan to hear the petition as an urgent case. The judges agreed and said that the case will be heard on Monday, December 5, 2023.