Probe “Illegal” Highway Contracts Given Away By Tamil Nadu CM: M K Stalin

Dravida Munnetra Kazhagam (DMK) Working President MK Stalin on July 23 urged Governor Banwarilal Purohit to initiate a Central Bureau of Investigation probe into alleged “illegal” contracts awarded by Chief Minister Edappadi K Palaniswami to his friends and family members. The DMK also hinted at taking a legal route in this matter if the governor hesitates to take action.

“He (Palaniswami), as a public servant, has committed all the offences under the relevant sub-sections of Section 13 of the Prevention of Corruption Act, 1988, and hence, is punishable for those offences,” Stalin stated in the memorandum submitted to the governor.

DMK claimed that the chief minister, who also holds the Ministry of Highways and Minor Ports, gave away contracts pertaining to roads worth Rs 3120 crore to three companies – Venkatachalapthy and Co., Sri Balaji Tollways Private Ltd., and SPK and Co., reportedly controlled by Nagarajan Seyyadurai, P. Subramaniam and sand mining baron Sekar Reddy.

Citing the recent Income Tax Department’s raids on the premises of SPK group of companies, Stalin noted that Nagarajan Seyyadurai, the managing director of these companies, was a partner in Ventakachalapathy and Co., a firm run by P. Subramaniam, the father-in-law of the CM Palaniswami’s son Mithun. In the search operations conducted on July 16-17, the officials have recovered over Rs 160 crore cash and gold bullion of over 100 kgat ten premises of SPK group across Tamil Nadu.

Reportedly, the civil construction firm SPK Group has won contracts worth over Rs 2000 crore in the past few years. Interestingly, another prominent company Sri Balaji Tollways Madurai (Private) Limited, jointly run by Seyyadurai and Subramaniam, has also bagged contracts from the state highways department. In 2017, the company bagged the contract of four-laning of the Madurai ring road.

Furthermore, the DMK accused the state ministers of “indulging in corruption in their respective portfolios in implementing various centrally sponsored schemes”. Earlier, on June 13, DMK leader RS Barathi filed a complaint with the Directorate of Vigilance and Anti-Corruption accusing the CM of indulging in corruption in this regard.

AIADMK leader and Deputy Chief Minister O Panneerselvam is already under scanner as a disproportionate assets case is pending against him and his family members in the Madras high court. The court asked the concerned authorities to explain by July 23 why no probe had begun even three months after a complaint alleging amassment of assets disproportionate to his known sources of income since Panneerselvam became MLA in 2001.

At the time, when the heads of AIAMDK are facing allegations of high-profile corruption, the party began explicitly supporting the BJP party which is in power at the Centre. In the no-trust vote moved by the Telugu Desam Party in this monsoon session, the AIAMDK voted in support of the ruling BJP.

Political analysts have been arguing that the state’s ruling party AIADMK has been mired in number of controversies following the death of former Chief Minister and AIADMK leader Jayalaithaa, and the BJP party is making inroads into the South Indian state by backing AIADMK leaders.

As the opposition parties are moving ahead with a campaign against the AIADMK government, pointing out the corruption allegations as “mega scams”, the state is witnessing political heat in the run up to the 2019 general elections.