Tamil Nadu government orders probe into ED’s corruption allegations linking minister KN Nehru

The Tamil Nadu government has ordered an inquiry into two letters from the Enforcement Directorate (ED) raising serious allegations of corruption involving senior DMK leader and Minister of Municipal Administration and Water Resources (MAWS) KN Nehru.

According to official sources, the Directorate of Vigilance and Anti-Corruption (DVAC) has initiated a detailed investigation into both letters sent to 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 initiated a probe into the ED’s allegations,” a senior official said. The Hindu on Wednesday (January 7, 2026).

The DVAC follows the procedure of registering a preliminary investigation and then conducts a detailed investigation into complaints of corruption at first glance violation before registering a case. “The ED has attached some documents in support of its allegations of irregularities in awarding contracts and recruitment of jobs in any of the departments. We have to conduct our own investigation to establish the facts before proceeding… this is the standard 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 found evidence of collecting bribes worth ₹1,020 crore from contractors executing various projects. The findings were reportedly based on incriminating material 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 extent of the 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 a full investigation, the sources said.

According to the ED, the evidence clearly showed that there was massive manipulation of government contracts/tenders for kickbacks. The bribes ranging from 7.5% to 10% of the value of government contracts were allegedly collected by Mr Nehru’s associates as “party fund” from contractors, the sources said.

The letter alleged that bribes were demanded for all types of work, including community toilets, construction and repair of houses for sweepers, outsourcing contracts for sanitation, and water and lake-related projects. Another layer of bribes was allegedly collected at various levels of project approval and invoice processing, bringing the total to 20-25% of the contract value.

Money laundering investigation

The sources said the evidence emerged 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 linked to individuals close to Mr Nehru, the agency said it had uncovered evidence indicating widespread rigging in MAWS tenders. Several documents and digital devices allegedly containing information on “proceeds of crime” have been seized.

While the Enforcement Case Information Report (ECIR), on the basis of which these searches were conducted, was later closed or destroyed, the ED said the recovered materials, such as WhatsApp chats, photos and documents, contained incriminating evidence that was handed over to the relevant authorities for further action.

Earlier in October last, the ED had written a letter to the DGP flagging allegations of corruption in the recruitment of engineers and planning officers in the MAWS department. The information collected in both cases was shared under the provisions of Section 66(2) of the Prevention of Money Laundering Act (PMLA), the sources said, adding that the decision to conduct a detailed inquiry and investigate the allegations had been communicated to the ED.

Mr Nehru denied the allegations of corruption and in a statement accused the ED of aligning itself with the “Opposition”, which could not tolerate the performance of the ‘Dravidian Model’ government. The agency had become a tool in the hands of the BJP and was indulging in a smear campaign against him, he said.