26 July 2024

Chennai, July 2024 – The Directorate of Enforcement (ED) has provisionally attached assets totaling Rs.14.21 crore in a case related to illegal red earth mining in Tamil Nadu. The action targets K. Ponmudy, a Member of the Legislative Assembly and Minister of Higher Education, and his son, Dr. P. Gautham Sigamani, a former Member of Parliament.

The ED's investigation, initiated from an FIR by the District Crime Branch, Villupuram, reveals that during Ponmudy's tenure as Minister of Mines from 2007 to 2010, he allocated mining licenses to his son, Gautham Sigamani, his brother-in-law K.S. Rajamahendran, and associate Jayachandran. These individuals are accused of extracting red earth beyond legal limits, amounting to an estimated Rs. 25.7 crore.

Recent searches in July 2023 uncovered cash worth Rs. 81.42 lakh and foreign currency valued around Rs. 13 lakh. Additionally, the ED has frozen Rs. 41.9 crore in fixed deposits. Immovable properties linked to K.S. Rajamahendran are valued at Rs. 5.47 crore, while movable assets in M/s. Confluence, associated with Gautham Sigamani's wife, total Rs. 8.74 crore.

This provisional attachment reflects the ED’s commitment to addressing corruption and illegal activities involving prominent figures.