Political tensions in Tamil Nadu are expected to escalate ahead of the Assembly elections after the Madras High Court directed the state’s anti-corruption agency to initiate criminal proceedings in an alleged Rs 365-crore cash-for-jobs corruption case linked to the Municipal Administration and Water Supply (MAWS) Department. The court ordered the Directorate of Vigilance and Anti-Corruption (DVAC) to register a First Information Report (FIR) and proceed with a formal investigation, placing the department headed by minister K N Nehru under scrutiny.
The directive followed the High Court’s examination of materials submitted by the Enforcement Directorate (ED), which has been probing suspected money laundering connected to alleged bribes paid for transfers, postings, recruitment processes, and government tenders. The ED had earlier shared its findings with the Tamil Nadu Director General of Police on October 27, 2025, under Section 66(2) of the Prevention of Money Laundering Act (PMLA), enabling information gathered during financial investigations to be forwarded for criminal action under other applicable laws.
In its order, the court clarified that the information supplied by the ED could not be treated as a routine complaint but constituted detailed source material supported by documentary and digital evidence. It held that the contents clearly indicated cognisable offences and therefore required mandatory registration of an FIR. The bench emphasised that once credible information disclosing a cognisable crime is placed before law enforcement authorities, the police are legally bound to register a case without delay rather than conduct prolonged preliminary inquiries.
The High Court further observed that the purpose of promptly registering an FIR is to formally set criminal law in motion and preserve the integrity of the investigation by recording initial facts at the earliest stage. Any delay, the court noted, could create opportunities for destruction or tampering of evidence, potentially undermining the investigation.
According to the ED’s report submitted before the court, investigators seized substantial digital and financial evidence during searches conducted in April 2025 at premises linked to associates of the minister. The agency claimed that bribes ranging from Rs 7 lakh to Rs 1 crore were allegedly collected from officials and engineers in exchange for favourable transfers and postings within the MAWS department. The ED alleged that it had traced money laundering transactions amounting to approximately Rs 365.87 crore, with funds reportedly routed through multiple channels, including real estate and construction ventures valued at over Rs 223 crore, property investments through suspected benami entities, purchases of gold bullion, foreign property acquisitions worth nearly Rs 44.88 crore, and luxury expenditures.
The investigation also referred to alleged irregularities in recruitment processes within the department. The ED dossier named individuals closely associated with the minister, including his brothers Ravichandran and Manivannan, and alleged their involvement along with certain public servants in manipulating candidate selection. Investigators reportedly recovered WhatsApp conversations indicating that details of selected candidates and interview call letters were shared before official announcements. The agency claimed that around 147 candidates whose call letters were circulated in advance were ultimately recruited.
Additionally, the ED alleged the use of hawala channels involving transactions of Rs 6.5 crore and another Rs 11.4 crore, reportedly executed using old Rs 10 currency notes as identification markers to match payments with beneficiaries. According to the agency, bribes ranging between Rs 25 lakh and Rs 35 lakh per post were allegedly collected through this system during recruitment exercises.
The High Court stressed that when a statutory agency forwards structured evidence containing financial trails, indexed documentation, and identification of individuals involved, the police cannot delay action by treating the matter as requiring only preliminary verification. It concluded that the material disclosed prima facie evidence of large-scale corruption and justified immediate criminal proceedings.
During the hearing, Advocate General P S Raman, representing the state government, argued that the DVAC had already begun a detailed inquiry after receiving the ED’s dossier and that judicial intervention was unnecessary at this stage. However, the court held that a formal FIR was essential to ensure a comprehensive and legally compliant investigation conducted in an expeditious manner.
One of the petitioners, AIADMK MP and lawyer Inbadurai, stated that the DVAC would now proceed with filing the FIR as directed. He also remarked that while the state government could challenge the order before the Supreme Court, its legal position might face difficulties under judicial scrutiny. There was no immediate response from Minister K N Nehru at the time the report was filed.
The ruling represents a significant judicial development in an ongoing anti-corruption investigation and is likely to have both legal and political repercussions, potentially leading to deeper scrutiny of alleged systemic irregularities within the MAWS department.
