Former AIADMK minister R. Vaithilingam booked on charges of acquiring disproportionate assets

The Orathanadu MLA is accused of using his position as Minister for Housing and Urban Development between 2011 and 2016 and acquiring assets in his son’s name, disproportionate to his known sources of income

The Directorate of Vigilance and Anti-Corruption (DVAC) has registered a case against former AIADMK minister and sitting MLA R. Vaithilingam and his elder son V. Prabhu for allegedly engaging in corrupt activities.

Mr. Vaithilingam has been accused of using his official position as Minister for Housing and Urban Development between 2011 and 2016 and acquiring assets in the name of his son, which are disproportionate to his known sources of income.

Mr. Vaithlingam was elected as an AIADMK MLA three times from Orathanadu constituency and was a minister from 2001 to 2006. From 2011 to 2016, Mr. Vaithilingam held the portfolios of Housing and Urban Development, and Agriculture. He was a Rajya Sabha MP between 2016 and 2021, and in the 2021 Assembly elections, he was elected as an MLA from Orathanadu again.

His son Mr. Prabhu is reportedly involved in an agricultural business and has been running a firm called Muthammal Estates Private Limited since 2014 with his close associates to deal with a real estate business. According to its Income Tax returns, this company had no business income during the relevant period between 2015-16 and 2016-17.

According to the DVAC FIR, “One Shriram Properties and Infrastructure Pvt Ltd had constructed IT buildings and leased out to IT companies from the late 2000s. In order to construct additional buildings – 1453 dwelling units in 57.47 acres at GST Road, Perungalathur, Chennai, it sought planning permission from Chennai Metropolitan Development Authority (CMDA). The planning permit file was pending with CMDA from December 2, 2013, to February 24, 2016. During the period when the file was pending with the then Housing Minister (Mr. Vaithilingam), Shriram Properties and Infrastructure Pvt limited are alleged to have paid ₹27.90 crore as ill-gotten money to the then Minister for getting approval of the planning permission.”

The Indian Bank account maintained by Muthammal Estate Private Ltd shows that a total sum of ₹27.90 crore was credited within a short span of eight days through RTGS from the bank account of Bharath Coal Chemicals.

Muthammal Estate had shown the above payment in its book of account as an unsecured loan obtained from the latter, the DVAC alleged. Further, Bharath Coal Chemicals Ltd is wholly owned by SVL Ltd, formerly known as Shriram Industrial Holdings Ltd and Shriram Ventures Ltd, which is a part of the Shriram Group of Companies.

This shows that the amount of ₹27.90 crore was not provided in 2015-2016 based on their financial capacity or ability to pay. Moreover, Bharat Coal Chemicals is not into the business of financial lending. This, therefore, was an ill-gotten amount received by Mr. Vaithilingam through his associate company owned by his son Mr. Prabhu, the FIR said.

Before the commencement of the check period (May 16, 2011), the value of assets found in the name of Mr. Vaithilingam, his wife, and elder son was ₹36.58 lakh.

The DVAC alleged that the quantum of assets disproportionately acquired by Mr. Vaithilingam in the name of his elder son during the check period between May 16, 2011, and March 31, 2016, was ₹32.47 crore, and said the extent of disproportion is 1,057.85 percent of the total income.

It discloses prima facie that Mr. Vaithilingam had abused his official position as minister and obtained ill-gotten money through Muthammal Estates owned by Mr. Prabhu. Mr. Prabhu actively aided Mr. Vaithilingam, and used the ill-gotten money for purchase of various lands and assets. Hence, both the accused committed the offences of criminal misconduct and abetment under Sections of Prevention of Corruption Act, said the FIR filed by DVAC’s Thanjavur unit.

The FIR was registered by Inspector M. Saravanan, DVAC, Thanjavur unit, and was submitted to the Chief Judicial Magistrate at Kumbakonam. Further investigation is on.

Published - September 21, 2024 03:24 pm IST