High Court orders FIR against Tamil Nadu minister in Rs 365 crore corruption case

Politics in Tamil Nadu is set to intensify ahead of the Assembly elections after the Madras High Court directed the state’s anti-corruption agency to begin criminal proceedings against minister KN Nehru. The court has ordered the Directorate of Vigilance and Anti-Corruption (DVAC) to register an FIR against Nehru over alleged large-scale corruption in the Municipal Administration and Water Supply (MAWS) Department.

The directive came after the High Court reviewed materials submitted by the Enforcement Directorate (ED), which is investigating alleged money laundering linked to bribes for transfers, postings and government tenders.

The ED had shared its findings with state authorities under Section 66(2) of the Prevention of Money Laundering Act, 2002.

‘ED MATERIAL NOT A MERE COMPLAINT’

In its order, the Madras High Court said the information shared by the ED under Section 66(2) of the PMLA was not a “mere complaint” but detailed source material backed by documentary and digital evidence.

The court held that the material clearly pointed to cognisable offences and was sufficient to require registration of an FIR. It directed the DVAC to register a criminal case and proceed as per law.

The court stressed that once information revealing a cognisable offence is placed before the jurisdictional police, registration of an FIR is mandatory.

ED ALLEGES RS 365 CRORE LAUNDERING TRAIL

According to the ED’s report submitted to the court, digital evidence — including WhatsApp chats, photographs, transfer orders and financial records — was seized during searches conducted in April 2025 at premises linked to the minister’s associates.

The ED alleged that bribes ranging from Rs 7 lakh to Rs 1 crore were collected from officers and engineers in exchange for transfers and postings in the MAWS department.

The agency has claimed direct evidence of money laundering worth Rs 365.87 crore, allegedly routed through:

• Real estate and construction businesses (Rs 223.65 crore)
• Property investments and benami entities
• Gold bullion purchases
• Foreign property acquisitions (Rs 44.88 crore)
• Luxury and lifestyle expenditures

The ED also referred to earlier communications alleging corruption in recruitment processes and manipulation of government contracts, including suspected tender kickbacks.

COURT VIEW ON DUTY TO REGISTER FIR

The High Court made it clear that when detailed evidence pointing to cognisable offences is forwarded by a statutory agency, the police cannot treat it as a matter for preliminary inquiry to delay registration.

The court noted that the ED’s report contained structured analysis, indexed documents, financial trails and identification of individuals involved, meeting the legal threshold for filing a criminal case.

By directing the DVAC to register the FIR, the court effectively rejected the argument that further preliminary scrutiny was needed before starting criminal proceedings.

POLITICAL AND LEGAL IMPACT

The case is expected to have major political consequences in Tamil Nadu as it involves a sitting minister and allegations covering transfers, postings and tenders in a key department.

With the High Court’s order, the DVAC must now formally register the case and begin an investigation under relevant provisions of the Prevention of Corruption Act and other applicable laws.

The ED is likely to continue parallel proceedings under the PMLA once the predicate offence is registered.

There was no immediate response from Minister KN Nehru at the time of filing this report.

The order marks a significant judicial intervention in an ongoing anti-corruption probe and may lead to a deeper investigation into alleged systemic corruption in the MAWS department.

- Ends