Multi-crore corruption in TN municipal administration dept: Madras HC directs DVAC to register FIR based on ED’s information

CHENNAI: In a setback to the Tamil Nadu govt, the Madras high court on Friday directed the state Directorate of Vigilance and Anti-Corruption (DVAC) to register a case based on the information shared by the Enforcement Directorate (ED) to the Tamil Nadu DGP on the alleged multi-crore corruption in the state municipal administration department. “The details shared and the materials available reveal that those candidates got selected pursuant to the alleged transactions and when a large-scale corruption stated to have happened involving several hundred crores of rupees, we find that the source material is sufficient to disclose commission of a cognizable offence,” the first bench of Chief Justice Manindra Mohan Shrivastava and Justice G Arul Murugan said.

It is not a case where the authorities have received a mere complaint which necessitated the state to conduct an inquiry through the vigilance department. In the case on hand, it is the detailed source information provided by the ED with a voluminous set of evidence disclosing a cognizable offence, the bench added. “Though we are satisfied that the investigation could be entrusted to an independent agency, considering the fact that the DVAC has been entrusted with the case by the state we deem it appropriate that the DVAC is directed to forthwith register a case and conduct detailed probe and suitable further action based on the investigation report.”

the court said. The court passed the orders on the plea moved by the ED, and AIADMK MP I S Inbadurai. The issue pertains to a series of information shared by the ED to the state DGP on the alleged multi-crore corruption in the municipal administration department including allegations of irregularities in floating tenders and corruption for transfer and postings in the department.Representing the state, advocate-general P S Raman submitted that when an investigation agency wants to conduct a detailed or preliminary inquiry, neither the accused nor the informant or complainant can demand registration of an FIR. Pointing out that a refusal to file an FIR will only make the ED an aggrieved party as an informant, Raman said that two unconnected persons, Inbadurai and Athinarayanan, against whom several criminal cases, including murder and attempt to murder, are pending, approached the court. “All the information shared by the ED was collected by the agency in April 2025 in connection with a bank fraud case. Since the bank fraud case and ECIR filed by the ED in connection with the case were quashed by a division bench of the HC, the ED sent the materials with it to the Tamil Nadu DGP,” Raman said. He further pointed out that the bank fraud case was quashed by the court with the consent of the ED, as there was no predicate offence for the ED to proceed further. Representing the DVAC, senior advocate N R Elango submitted that the agency adopts the procedure of conducting a preliminary inquiry in all the complaints. DVAC will conduct a proper probe and submit the report to the govt for further action, he said. Representing Inbadurai, senior advocate V Raghavachari argued that the issue to be decided is whether a preliminary inquiry is required before filing an FIR. The issue was already addressed by the Supreme Court, which categorically said that an FIR must be registered when the information shared discloses commission of a cognizable offence.