According to the ED, evidence clearly showed there was a huge manipulation of government contracts/tenders for kickbacks. File
| Photo Credit: The Hindu
The Tamil Nadu Government has ordered an investigation into two letters sent by the Directorate of Enforcement (ED) levelling serious allegations of corruption involving senior DMK leader and Minister of Municipal Administration and Water Supply (MAWS) department, K.N. Nehru.
According to official sources, the Directorate of Vigilance and Anti-Corruption (DVAC) has launched a detailed inquiry into both the letters sent to the Director-General of Police (in-charge), G. Venkatraman, with copies marked to Chief Secretary N. Muruganandham. The ED had sought registration of an FIR and investigation into the alleged offences.
“Soon after receiving the complaints, the DGP (in-charge) forwarded them to the State Government for necessary action. After a detailed inquiry was ordered, the DVAC has launched an investigation into the allegations made by the ED,” a senior official told The Hindu on Wednesday (January 7, 2026).
The DVAC follows the procedure of registering a preliminary inquiry and then a detailed inquiry into complaints of corruption to establish prima facie offence before registering a case. “The ED has enclosed some documents in support of its allegations of irregularities in the award of contracts and job recruitment in one of the departments. We have to conduct our own investigation to establish the facts before proceeding further…this is the standard operating procedure,” the official said.
“Ruthless corruption”
In one of the letters sent to the DGP in early December 2025, the ED alleged “ruthless corruption” in the award of contracts in the MAWS department. In its 258-page dossier, the agency claimed to have unearthed evidence of bribe collections amounting to ₹1,020 crore from contractors who executed various projects. The findings were reportedly based on incriminating materials recovered during searches conducted in April this year, the sources said.
Providing copies of documents, photographs and WhatsApp chats retrieved from the mobile phones of suspected persons, the agency said the actual quantum of corruption could be “many times more” than the ₹1,020 crore identified so far, and urged the State police to register a case and conduct full investigation, the sources said.
According to the ED, evidence clearly showed there was a huge manipulation of government contracts/tenders for kickbacks. The bribes ranging from 7.5% to 10% of the value of government contracts were allegedly collected from contractors as “party fund” by the associates of Mr. Nehru, the sources said.
The letter alleged bribes were demanded across all categories of work, including community toilets, construction and repair of sweepers’ housing, sanitation outsourcing contracts, and water/lake-related projects. At various levels of project clearance and bill processing, another layer of bribes was allegedly collected, bringing the total to 20-25% of contract value.
Money laundering probe
The sources said the evidence arose from an ED probe into money laundering linked to a bank fraud case initially registered by the CBI. During searches in Chennai, Tiruchi and Coimbatore at locations connected to individuals close to Mr. Nehru, the agency said it uncovered evidence indicating widespread manipulation in MAWS tenders. Several documents and digital devices allegedly containing information on “proceeds of crime” were seized.
Although the Enforcement Case Information Report (ECIR) based on which those searches were conducted was later closed or quashed, the ED said the materials recovered such as WhatsApp chats, photographs and documents contained incriminating evidence that was transferred to relevant authorities for further action.
Earlier in October last, the ED had written to the DGP flagging allegations of corruption in the recruitment of engineers and planning officers in the MAWS department. The information gathered in both the cases were shared under the provisions of Section 66(2) of the Prevention of Money Laundering Act (PMLA), the sources said, and added that the decision to register a detailed inquiry and investigate the allegations was communicated to the ED.
Denying the allegations of corruption, Mr. Nehru, in a statement, accused the ED of joining the “Opposition”, which could not stomach the achievements of the ‘Dravidian Model’ government. The agency had become a tool in the hands of the BJP and was indulging in a smear campaign targeting him, he said.
Published – January 07, 2026 10:57 pm IST
