CHENNAI: The Directorate of Enforcement, Chennai zonal office, has provisionally attached two immovable properties worth Rs 100.92 crore on January 9 under the provisions of the Prevention of Money Laundering Act in connection with a case against R Vaithilingam, MLA and former AIADMK minister for Housing and Urban Development.
The development has created much flurry among the party ranks and is seen as the latest episode in the ongoing I-T and ED raids on AIADMK leaders belonging to different factions.
An official communique from the ED said the attached properties are registered in the name of Muthammal Estates Pvt Ltd, a family-owned entity.
The ED investigation was initiated on the basis of an FIR registered by the Directorate of Vigilance and Anti-Corruption against Vaithilingam, elected from the Orathanadu constituency in Thanjavur district.
Vaithilingam, is the deputy in the AIADMK faction led by O Paneerselvam, who was ousted by leader of the opposition Edappadi K Palaniswami.
It is alleged that during his tenure, Vaithilingam accepted a bribe of Rs 27.90 crore from Shriram Properties & Infrastructure Pvt Ltd in exchange for granting planning permission for a real estate project.
Earlier, the ED investigations had uncovered the use of shell companies as cover and disguise bribe payments as share application money.
These payments, purportedly made by the Shriram group of entities for the purchase of land, were never intended for actual land acquisition.
Instead, the funds were routed through multiple shell entities and ultimately parked in Muthammal Estates Pvt Ltd., controlled by Vaithilingam’s family members.
The illicit funds were then utilised to acquire immovable properties in Tiruchy, which have now been provisionally attached, the ED note said.
I-T raids and ED attachments may see AIADMK leaders leaning towards the BJP, as evident in neighbouring Puducherry, said a former AIADMK MLA now with EPS camp.