Chennai: The Enforcement Directorate (ED) of Tuesday froze fixed deposits worth Rs 41.9 crore of DMK leader and Tamil Nadu Higher Education Minister, K. Ponmudi.
The ED in a press statement said on Tuesday that cash worth Rs 81.7 lakhs and foreign currency (British pound) equivalent to Rs 13 lakh were seized from the residence and other premises of the Higher Education Minister. The ED has been conducting searches at the premises of Ponmudi, his son and DMK MP Gautham Sigamani, and acquaintances since Monday morning.
The minister and his son are now being questioned at the ED regional office in Sastri Bhavan. The duo was earlier questioned on Monday night after being detained by the ED. They were released early on Tuesday morning.
An ED official said that the case involves alleged illegal issuance of red sand mining licences at five locations by Ponmudy, who was the Minister of Mines at the time, to his son, relatives, and benami holders.
The official said that the proceeds obtained from illegal mining were deposited in benami accounts and were layered through multiple transactions and accounts.
“Eventually, two overseas entities, PT Excel Mengindo in Indonesia and Universal Business Ventures FZE in the UAE, were acquired. The Indonesian company was shown to have been purchased for a nominal amount of Rs 41.57 lakh, and it was later sold for over Rs 100 crore. It is suspected that huge amounts of cash were transferred through hawala and infused in the purchase of these overseas entities,” said the official.
“Various incriminating documents have been found, seized and are currently under analysis. An amount of Rs 41.9 crore, identified as direct proceeds of crime, has been freezed under Section 17(1A) of the PMLA,” the official added.
It is to be noted that Ponmudi is the second minister in M.K. Stalin’s Cabinet to be subjected to interrogation by the ED. State minister (without portfolio) Senthil Balaji is now lodged in the Puzhal central jail in Chennai after being arrested by the ED in June.
Tamil Nadu Chief Minister M.K. Stalin had called K. Ponmudi and told him to face the ED questioning boldly and to handle the matter legally. The Chief Minister was in Bengaluru attending the grand opposition unity meeting.
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