Ponmudy appears before ED in money-laundering case

Tamil Nadu’s Forest Mini;ster K. Ponmudy on Tuesday appeared before officials of the Directorate of Enforcement (ED) in connection with a money-laundering case involving him and P. Gautham Sigamani, his son and former MP. 

Sources said that the senior DMK leader’s statement was recorded under provisions of the Prevention of Money Laundering Act (PMLA). The issue arose from a case booked by the Tamil Nadu police, during the AIADMK regime, over alleged illegal mining activities when Mr. Ponmudy was the Minister of Mines between 2007 and 2010. 

On July 17 last year, the ED searched seven locations related to Mr. Ponmudy, who was then the Minister of Higher Education, and Mr. Sigamani (then an MP).

The case involves alleged illegal issuance of red sand mining licenses by Mr. Ponmudy for five locations to his son, relatives, and benami-holders. The proceeds obtained through this were deposited into the benami accounts, and layered through multiple transactions and accounts. Eventually, two overseas entities, namely PT Excel Mengindo in Indonesia and Universal Business Ventures FZE in the UAE, were acquired. The Indonesian company, shown to have been purchased for a nominal amount of ₹41.57 lakh, was later sold for over ₹100 crore in 2022. It was suspected that huge amounts of cash were transferred through hawala mode, and used to purchase these overseas entities, the ED said in a statement. 

During the searches, the ED identified a trail of illegal proceeds, derived from these illicit activities, being used to acquire properties, companies, and to channel into other investments. Various incriminating documents were found and an amount of ₹41.9 crore, identified as direct proceeds of the crime, was frozen under Section 17(1A) of the PMLA as it was held in the form of a Fixed Deposit.

Published - December 18, 2024 01:43 am IST