CHENNAI: The Directorate of Vigilance and Anti-Corruption (DVAC) has registered a major corruption case against former Municipal Administration and Water Supply Minister KN Nehru of DMK, his two brothers, close associates, former MLAs, government officials and contractors over allegations of large-scale manipulation of government tenders and collection of illegal gratification in the name of “party fund”.
The FIR, registered by the Special Investigation Cell of DVAC on September 4, alleges that government contracts under the Municipal Administration, Urban and Water Supply (MAWS) Department were systematically manipulated between 2021 and 2025, resulting in alleged illegal gains running into Rs 1020 crore.
The case names 13 accused, including KN Nehru, his brothers KN Manivannan and N Ravichandran, and Kavi Prasad, described in the FIR as a close associate of Nehru. D Ramesh and D Prabhu of the TVH Group of Companies, former Town Planning Officer Sasipriya, former Regional Engineers G Balachandran and G Murugesan, former MLAs S. Sudarshanam and JJ Ebenezer, office-bearers of CT Constructions and contractor K Sathish Kumar have also been named.
Unknown MAWS officials, private individuals, contractors and companies are also under investigation.
The case originated from a 258-page report submitted to the DVAC by the Directorate of Enforcement on December 3, 2025. According to the FIR, the Enforcement Directorate alleged manipulation and corruption in the awarding of government contracts between 2021 and 2025.
The report alleged that the accused had cheated the Tamil Nadu government and the public at large and obtained wrongful gains of about Rs 1,020 crore through alleged manipulation of government contracts.
Following permission from the State government, the DVAC registered a detailed enquiry in December 2025. The enquiry, according to the FIR, prima facie found evidence of an alleged criminal conspiracy involving public servants and private individuals to manipulate tenders, collect illegal gratification and award contracts to pre-selected bidders.
One of the central allegations in the FIR is that contractors were allegedly required to pay between 7.5% and 10% of the value of government contracts as illegal gratification, described in communications as “party fund”.
The DVAC alleged that Kavi Prasad, described as a close associate of Nehru, had allegedly obtained advance information about proposed government works and tenders by maintaining contact with senior IAS officers and other officials.
According to the FIR, this information was allegedly used to identify and “prefix” contractors before tenders were opened. The document alleges that selected contractors were subsequently made successful bidders after illegal gratification was collected.
The DVAC has relied substantially on WhatsApp chats, photographs and calculation sheets allegedly recovered from mobile phones during the Enforcement Directorate investigation.
The FIR claims that photographs and chats recovered from Kavi Prasad's phone showed communications with senior officials regarding government projects, inspections, contractors and departmental matters.
The FIR cites a WhatsApp communication allegedly sent by former Madhavaram MLA S Sudarshanam to Kavi Prasad in September 2021 concerning a Chennai Metropolitan Water Supply and Sewerage Board contract.
According to the enquiry, details of a contract for outsourcing the operation and maintenance of the Madhavaram Booster for three years were allegedly shared before the tender process was completed.
The FIR states that the name of contractor C&T Constructions had allegedly been marked against the work even before the bid was opened. The approximate value mentioned was Rs 75 lakh.
The DVAC alleged that the contractor had effectively been identified before the tender-opening process and that the work was subsequently awarded to the same company.
Another major allegation concerns former RK Nagar MLA JJ Ebenezer.
The FIR says a WhatsApp chat dated July 30, 2024, allegedly recovered from Kavi Prasad's phone, contained photographs of a letter carrying details of several storm-water drain contracts in Chennai.
The enquiry found that three packages, with a combined contract value of Rs 525.31 lakh, had allegedly been identified in advance.
A separate calculation sheet allegedly showed Rs 55.15 lakh as “party fund” or illegal gratification, approximately 10% of the contract value. Of this, Rs 15 lakh was allegedly shown as already paid, while Rs 35.15 lakh was shown as the balance amount receivable.
The DVAC alleged that the three works were subsequently awarded to contractor K Sathish Kumar on September 6, 2024, although the alleged selection had been recorded on July 30, 2024, before the scheduled opening of bids on August 9.
The FIR also details alleged illegal gratification connected with municipal works in the Tirupur and Coimbatore regions.
A calculation sheet allegedly shared in November 2022 showed Rs 12.08 lakh in alleged illegal gratification connected with works in Udumalpet and Pollachi municipalities.
According to the DVAC, Rs 8 lakh was allegedly connected with the construction of a Knowledge Centre at a municipal school in Udumalpet, while Rs 4.08 lakh was allegedly linked to community toilet projects in Pollachi.
The FIR further cites a December 2021 calculation sheet containing details of works in Dharapuram, Palladam, Velakovil, Gobichettipalayam, Sathyamangalam and Bhavani municipalities.
The document allegedly showed illegal gratification of Rs 155.79 lakh calculated at around 10% of contract values.
The FIR states that a subsequent message allegedly indicated that the amount had been received under the “Tirupur RE” account.
The DVAC said the enquiry relied on material recovered from the mobile phones of several accused and statements recorded by the Enforcement Directorate.
A photograph allegedly recovered from the phone of KN Manivannan contained a list of amounts received from various persons and amounts allegedly handed over to others.
According to the FIR, the records reflected alleged collections totalling Rs 1,198.20 lakh and disbursals of Rs 1,166.90 lakh.
The DVAC alleged that several of the entries corresponded with amounts mentioned in WhatsApp communications between D Prabhu and D Ramesh.
The FIR also refers to alleged payments involving Sasipriya, who was then serving as Town Planning Officer in Coimbatore.
Among the allegations cited are Rs 20.90 lakh allegedly received in July 2021, Rs 27.25 lakh allegedly received in August 2021 and Rs 27.30 lakh allegedly received in September 2021.
The FIR states that these transactions were allegedly admitted or explained by D Ramesh during questioning by the Enforcement Directorate.
The FIR further refers to several alleged payments involving VR Water Infra.
According to the DVAC document, chats allegedly showed the collection of Rs 1 crore, Rs 2.77 crore, Rs 5 crore, Rs 2 crore and Rs 4 crore on different occasions in connection with government contracts.
The enquiry also refers to other alleged collections, including Rs 52.66 lakh and Rs 30 lakh, involving contractors and individuals connected with government works.
The DVAC concluded that the material collected during the detailed enquiry prima facie indicated an organised conspiracy to manipulate government tenders and award contracts to pre-decided bidders.
According to the FIR, illegal gratification was allegedly collected in the name of “party fund” at rates ranging between 7.5% and 10% of contract values.
The agency has registered offences under provisions relating to criminal conspiracy, criminal breach of trust and cheating under the IPC and Bharatiya Nyaya Sanhita, besides provisions of the Prevention of Corruption Act.
The DVAC said the case had been taken up for investigation and the FIR, along with the Enforcement Directorate's 258-page report, had been submitted before the Principal Judge, City Civil and Sessions Court, Chennai.