TN Minister Periyasamy moves Madras HC against ED probe, summons; agency told to respond

CHENNAI: Hearing a petition filed by Rural Development Minister and senior DMK leader I Periyasamy challenging the Directorate of Enforcement (ED) investigation against him and family members, the Madras High Court directed the Directorate of Enforcement (ED) to file its response.

Earlier, after the AIADMK ousted the DMK and came to power, the Directorate of Vigilance and Anti-Corruption (DVAC) had registered a case alleging that during his tenure as Housing Minister between 2006 and 2011, Periyasamy had amassed assets worth Rs 2.35 crore disproportionate to his known sources of income. His wife P Suseela, and sons IP Senthilkumar and IP Prabhu, were also named as accused.

When the DMK returned to power, the Dindigul court had discharged the Minister and others from the case. However, the Madras High Court set aside that order on April 28. An appeal challenging this order is presently pending before the Supreme Court.

In the meantime, the Enforcement Directorate registered a case under the Prevention of Money Laundering Act in connection with the matter and conducted searches in August at the residences of Periyasamy, his sons Prabhu and Palani constituency DMK MLA Senthilkumar, his daughter Indira, as well as at the offices of the Minister and the MLA.

During the searches, the officials seized property documents, investment details, mobile phones, and bank account details of companies, among other materials. Subsequently, the central agency issued notices to Periyasamy and his family members seeking their explanation regarding the proposed attachment of properties.

Challenging these notices as well as the ED investigation, Periyasamy and his family members filed petitions before the Madras High Court.

When the petitions came up for hearing before a Division Bench comprising Chief Justice Manindra Mohan Shrivastava and G Arul Murugan, the petitioners’ advocate, senior counsel John Sathyan, argued that since the Supreme Court has stayed the trial in the disproportionate assets case against Periyasamy, the ED investigation should also be stayed.

He further submitted that after the filing of the petition, the agency had issued a summons directing the Minister to appear for inquiry on Thursday. The advocate representing the central agency sought time to file a reply to the petitions.

After hearing both sides, the bench directed the Enforcement Directorate to file its counter affidavit by January 5 and adjourned the hearing.