Former AIADMK minister, GCC engineers arrested on corruption charges

The Directorate of Vigilance and Anti-Corruption (DVAC) has arrested former AIADMK minister and Thondamuthur MLA SP Velumani, and top engineers of the Greater Chennai Corporation (GCC) on charges of fraud in award of tenders and misappropriation of funds worth ₹26.61 crore.

After preliminary investigation into the complaints filed by Jayaram Venkatesan, chairman of Arappor Iyakkam, found some semblance of justice, the DVAC registered a case in which Mr Velumani, the then Minister for Municipal Administration, Rural Development and Implementation of Special Programme; L Nandakumar, former Superintending Engineer; M Pugazhendi, former Chief Engineer; and Executive Engineers A S Murugan, B R Saravanamurthy, V Periasamee, V Chinnadurai, A Nachan; and others were accused of violating “corporate rules in awarding tenders and selecting contractors”. The DVAC said the accused had caused loss to the GCC exchequer in awarding tenders for stormwater drainage and road works executed in 2018.

The preliminary investigation had revealed at first sight information relating to a cognizable offence which warrants registration of a criminal case. The case pertains to stormwater drainage works carried out under the Chennai Mega City Development Mission in 2018-19, and works relating to reconstruction and rehabilitation of damaged roads, and footpath projects under the Tamil Nadu Urban Roads Infrastructure Programme in 2018-19.

While awarding the tenders, the inviting/accepting authorities and the Technical Control Committee violated the Tamil Nadu Transparency in Tenders Act, 1988 and the Tamil Nadu Transparency in Tenders Rules, 2000, under the influence and directions of Mr. Velumani, the DVAC said in its first information report.

‘Abnormal rates’

The agency further said that R. Chandrasekar, one of the founders of KCP Engineering (P) Ltd and a close associate of Mr. Velumani, selected the companies to which the tenders were to be awarded. The contractors who had awarded the works had quoted abnormally high rates for certain items and abnormally low rates for the rest. Despite negotiations with the lowest bidder, the rate quoted by the bidder was higher than the schedule of rates and the actual market rate.

According to the DVAC, the accused were involved in criminal conspiracy, had improperly awarded tenders for a number of works and were guilty of criminal embezzlement of public money. The agency’s special investigation cell registered the case under various provisions of the Prevention of Corruption Act, 1988, after obtaining permission from the competent authority.