Chennai:The Enforcement Directorate (ED) crackdown on premises of Tamil Nadu higher education minister K. Ponmudi and his son, Gautam Sigamani, also a member of Parliament, last Sunday which saw sleuths zeroing in on seven locations linked to the duo in connection with an alleged red sand mining helped the agency get some vital clues.
Not just money laundering, ED raids on Ponmudi premises unearth more than what meets the eye
The investigation has revealed a trail of illegal transactions channelled into acquiring overseas entities, namely PT Excel Mengindo in Indonesia and M/s Universal Business Ventures FZE in the UAE.
Tamil Nadu higher education minister K. Ponmudi
The case involves Ponmudi's purported issuance of red sand mining licenses at five locations, unlawfully benefiting his son, relatives, and unnamed holders. The investigation has revealed a trail of illegal transactions channelled into acquiring overseas entities namely PT Excel Mengindo in Indonesia and M/s Universal Business Ventures FZE in the UAE.
During search operations, Enforcement Directorate sleuths seized unaccounted cash amounting to Rs. 81.7 lakh along with unexplained foreign currency, primarily in British pounds equivalent to approximately Rs. 13 lakhs, from Ponmudy's residence. Sources privy to the development said an attempt to falsify accounting records to mislead the probe was thwarted, and a statement corroborating the allegations was obtained from a concerned individual.
Further investigations have uncovered various incriminating documents, seized for analysis, have led to the freezing of a whopping amount of Rs. 41.9 crore under Section 17(1A) of the Prevention of Money Laundering Act (PMLA) as direct proceeds of the alleged crime held in the form of a fixed deposit. As the investigation is underway, authorities are continuing their efforts to trace and establish the utilisation of illegal proceeds in acquiring properties, companies, and other investments.