ED searches premises of former AIADMK minister R Vaithiyalingam in money laundering case

The Enforcement Directorate (ED) conducted searches against former AIADMK minister R Vaithiyalingam and some others as part of a money laundering case investigation. The raids took place in four cities in the state, including Chennai, under the provisions of the Prevention of Money Laundering Act (PMLA). 

The ED investigation is related to alleged quid pro quo in giving sanctions for Chennai Metropolitan Development Authority works during Vaithiyalingam’s stint as the Tamil Nadu housing development minister. The raids started on October 23.

It is alleged that “tainted” funds were received as unsecured loans in the bank accounts of some companies allegedly linked to him. 

Tamil Nadu police had filed a Rs 27.90 crore bribery case against R Vaithilingam, a minister during the previous AIADMK regime, in September this year. It is alleged that a noted real estate developer allegedly paid bribe to the minister to secure planning permission for a project in 2016. 

The Directorate of Vigilance and Anti-Corruption's (DVAC) FIR states that the real estate firm funnelled Rs 27.9 crore in bribes to a shell company managed by Vaithilingam’s family in return for approvals to develop a residential project.  

Vaithilingam, formerly housing and urban development minister, is the first accused in the FIR registered by the DVAC. Ten others include Shriram Properties and Infrastructure Pvt Ltd (SPIPL) and a director of SPIPL. Vaithiligam and the company did not answer calls/text messages seeking their reaction. 

Vaithiyalingam, a close aide of O Panneerselvam (OPS), was expelled along with the former CM from the AIADMK in 2022 during the leadership issue involving OPS and incumbent party chief Edappadi K Palaniswami. 

(With inputs from PTI)