Dravida Munnetra Kazhagam organising secretary R.S. Bharathi has moved the Madras High Court seeking constitution of a special investigation team (SIT) and a court-monitored probe into serious allegations of corruption against Municipal Administration and Rural Development Minister S.P. Velumani.
In an affidavit, the petitioner accused the Minister of having abused his official position to obtain government contracts for a list of seven private firms, with which he allegedly had close ties, and thereby indulging in misappropriation of public funds and accumulating assets disproportionate to his known sources of income.
It was pointed out that the turnover of one of the seven firms had skyrocketed from just ₹17.47 crore in 2011-12 to ₹142.94 crore in 2016-17. Over this period, it had bagged contracts worth ₹498.42 crore. Similar was the case with the six other firms and contracts had been awarded through departments under the control of the Minister, the petitioner alleged.
“I submit that benamis of Velumani have become directors and control companies in unrelated sectors like jewellery and hospitality through unaccounted money gained through contracts awarded by him, and these companies are used for money laundering,” the affidavit read.
Spate of withdrawals
The petitioner claimed that the surplus funds of Greater Chennai Corporation had got depleted from ₹942 crore in 2012 to ₹543 crore in 2013 and it had now become debt-ridden with a loan of ₹2,500 crore. This could be attributed to maladministration by the Minister.
It has also been contended that there had been a spate of withdrawals from the fixed deposit accounts held by the Coimbatore City Municipal Corporation without regard to its financial health and it had led to the corporation turning bankrupt. The corporation was now borrowing money even for its day-to-day operations, the petitioner said.
“Velumani has singularly ensured the utter ruin of the finances of local bodies in Tamil Nadu and he is responsible for the disastrous state of governance prevailing in corporations and municipalities,” the petitioner said and insisted on a detailed investigation on the basis of a complaint lodged by him with the Directorate of Vigilance and Anti-Corruption on September 10.