Madras HC quashes one corruption case FIR against former Minister S.P. Velumani, refuses to quash another – The Hindu

The Madras High Court on Wednesday quashed one First Information Report (FIR) registered against former Municipal Administration Minister S.P. Velumani of the AIADMK in 2021 on corruption charges, but refused to quash another FIR registered this year on similar charges.

A Division Bench of Justices P.N. Prakash and R.M.T. Teekaa Raman said they were quashing the FIR that had been registered against the former Minister on the basis of complaints lodged by Arappor Iyakkam, DMK leader R.S. Bharathi and a report of the Comptroller and Accountant General (CAG).

This quashing would be applicable only with respect to the former Minister and not the other accused since it had been registered after the Directorate of Vigilance and Anti-Corruption (DVAC) conducted a preliminary inquiry in 2019, filed a negative report on not finding any material to register a case against him and this report had been accepted by the government in January 2020.

It was only after a change in the ruling dispensation in the State with the DMK taking up the mantle in May 2021 that the DVAC took note of the 2020 CAG report too and registered a FIR in August 2021 on the basis of the complaints lodged by the NGO Arappor Iyakkam and Mr. Bharathi in 2018 alleging large scale irregularities in the award of Corporation contracts.

Firms of close associates of former Minister given contracts, alleges FIR

The 2021 FIR mentioned that Velumani was actually a registered contractor of the Coimbatore Municipal Corporation between 1991 and 2001. He had started a firm called P. Senthil and Co., along with his family members.

However, he resigned from the firm in 2001 to contest in the Assembly election held that year. In May 2014, he assumed charge as the Municipal Administration Minister and abused his position in award of contracts by the Greater Chennai and Coimbatore Corporations.

The FIR alleged that firms run by his close associates were awarded contracts worth ₹464.02 crore by the Greater Chennai Corporation and ₹346.81 crore by the Coimbatore Corporation between 2014 and 2018.

While awarding those tenders, Corporation officials too had blatantly violated the provisions of the Tamil Nadu Transparency in Tenders Act, 1998, because they were acting under the influence and directions of the then Minister, the FIR claimed.

A similar FIR registered by the Coimbatore Unit of the DVAC in March this year, on the basis of “credible information” collected by the agency, alleged that the former Minister had entered into a criminal conspiracy with his associates and plundered public money through fraudulent award of contracts.

Property acquired

A discreet verification by the agency revealed that he had illicitly acquired properties worth several crores of rupees in his name as well as in the names of his family members between 2016 and 2021.

Stating that he and his family members had gone on several trips to Hong Kong, Malaysia, Thailand, Singapore, the UAE, the United Kingdom, Indonesia and Australia, the DVAC said the family’s total declared assets were only worth ₹1.03 crore as on April 27, 2016.

However, on March 15, 2021, they had declared assets worth ₹58.94 crore. Further, the ill-gotten wealth had been routed to various private firms, including a few jewellers who had shown it as their income by inflating their sales volume.