CHENNAI: The Directorate of Enforcement (ED) has registered a money laundering case under the Prevention of Money Laundering Act (PMLA) in connection with the alleged Rs 100-crore private school approval fraud involving former school education minister Anbil Mahesh Poyyamozhi and BT Arasakumar.
The agency registered the case based on an FIR filed by the Central Crime Branch (CCB) of the Greater Chennai Police and initiated its investigation a few weeks ago, sources said, adding that the central agency would dig deep into the financial activities of the former minister, and his family members and friends.
The development comes days after Arasakumar was granted default bail by the Special Court for Prevention of Corruption Act cases in Chennai on Tuesday (September 29).
The court granted bail after the CCB failed to file its final report within the stipulated 90-day period.
The case originated from a complaint lodged by DC Elangovan, secretary of the Federation of Associations of Private Schools in Tamil Nadu.
He alleged that Arasakumar, who headed an unregistered organisation called the Tamil Nadu Private Schools Association, collected around Rs 100 crore from school managements by promising permanent recognition, upgradation, DTCP approvals and, other statutory clearances using his connections in the political and bureaucratic circles.
However, he failed to secure the promised approvals or return the money collected from school managements.
The agency registered the case based on an FIR filed by the CCB and initiated its investigation a few weeks ago, sources said, adding that it would dig deep into the financial activities of former minister, and his family members and friends
The CCB arrested Arasakumar on June 27 and detained him under the Goondas Act on July 13, which was quashed later.
On September 16, the CCB booked Anbil Mahesh under the Prevention of Corruption Act and conducted searches at premises linked to him and his aide in Chennai and Tiruchy, including the DMK leader’s residence in Thennur.
The agency subsequently conducted searches in Kallakurichi at locations linked to Muthukumar, another key accused who is absconding.
The ED's investigation is expected to focus on the alleged movement of funds and the possible proceeds of crime in the case.