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CHENNAI: The Directorate of Vigilance and Anti-Corruption (DVAC) has registered a First Information Report (FIR) against former Municipal Administration and Water Supply Minister KN Nehru of the DMK and 12 others, alleging manipulation of government tenders and collection of illegal gratification in connection with contracts worth over Rs 1,020 crore.
The FIR, registered by the Special Investigation Cell of the DVAC on September 4, concerns contracts awarded under the Municipal Administration, Urban and Water Supply (MAWS) Department between 2021 and 2025.
According to the FIR, the accused allegedly conspired to manipulate tender processes, identify contractors before bids were opened and collect illegal gratification, referred to in communications as "party fund".
The case is based on, among other material, a 258-page report submitted to the DVAC by the Enforcement Directorate (ED) on December 3, 2025. The report contained material gathered during the ED’s investigation, including WhatsApp chats, photographs and calculation sheets allegedly recovered from mobile phones.
Besides Nehru, the FIR names his brothers KN Manivannan and N Ravichandran, and Kavi Prasad, described in the FIR as a close associate of the former minister. 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 C&T Constructions and contractor K Sathish Kumar have also been named.
The FIR also refers to unidentified MAWS officials, private individuals, contractors and companies whose roles are to be ascertained during the investigation.
Following permission from the State government, the DVAC began a detailed inquiry in December 2025. The agency said the inquiry prima facie revealed material suggesting a criminal conspiracy to manipulate tender processes, collect illegal gratification and award contracts to pre-selected bidders.
Digital evidence and WhatsApp chats recovered by ED form basis of corruption case against former minister, aides, and contractors
According to the FIR, contractors were allegedly required to pay between 7.5% and 10% of the value of government contracts as illegal gratification. The amounts were allegedly described in communications as "party fund".
The agency alleged that Kavi Prasad had access to advance information about proposed government works and tenders through contacts with officials. The information was allegedly used to identify contractors before tenders were formally processed.
The FIR relies substantially on digital material recovered by the ED, including chats and photographs recovered from Kavi Prasad's phone, containing communications on government projects, inspections, contractors and departmental matters.
One instance cited in the FIR concerns a Chennai Metropolitan Water Supply and Sewerage Board contract for outsourcing the operation and maintenance of the Madhavaram Booster for three years.
According to the inquiry, a WhatsApp communication allegedly sent by former Madhavaram MLA S Sudarshanam to Kavi Prasad in September 2021 contained details relating to the work. The FIR alleged that C&T Constructions had been marked against the work before the tender process was completed.
The approximate value of the contract was stated to be Rs 75 lakh. The work was subsequently awarded to the same company, according to the DVAC.
Another allegation concerns stormwater drain works in Chennai. The FIR cited a WhatsApp chat of former RK Nagar MLA JJ Ebenezer dated July 30, 2024, allegedly recovered from Kavi Prasad's phone, containing photographs of a letter with details of several contracts.
According to the inquiry, three packages with a combined contract value of Rs 5.25 crore had allegedly been identified in advance. A separate calculation sheet allegedly recorded Rs 55.15 lakh as "party fund" or illegal gratification, the DVAC said.
Of this, Rs 15 lakh was allegedly shown as having been paid, while Rs 35.15 lakh was recorded as the balance amount receivable.
The FIR alleged that the three works were subsequently awarded to contractor K Sathish Kumar on September 6, 2024. The alleged selection, however, had been recorded on July 30, before the scheduled opening of bids on August 9.
The FIR also refers to alleged collections connected with municipal works in Tirupur and Coimbatore districts.
A calculation sheet allegedly shared in November 2022 recorded Rs 12.08 lakh as illegal gratification connected with works in Udumalpet and Pollachi municipalities. Of this, Rs 8 lakh was allegedly connected with the construction of a Knowledge Centre at a municipal school in Udumalpet, and Rs 4.08 lakh to community toilet projects in Pollachi.
Another calculation sheet, dated December 2021, allegedly contained details of works in Dharapuram, Palladam, Vellakoil, Gobichettipalayam, Sathyamangalam and Bhavani municipalities.
According to the FIR, the document recorded alleged illegal gratification of Rs 1.56 crore, calculated at about 10% of the contract values. A subsequent message allegedly indicated that the amount had been received under the 'Tirupur RE' account.
The DVAC also referred to financial records allegedly recovered from the phone of KN Manivannan. A photograph allegedly contained a list of amounts received from various persons and amounts handed over to others.
According to the FIR, the records reflected alleged collections totalling Rs 11.98 crore and disbursals of Rs 11.67 crore. The agency alleged that several entries corresponded with amounts mentioned in WhatsApp communications between D Prabhu and D Ramesh of the TVH Group.
The FIR also refers to alleged payments involving Sasipriya, who was then serving as Town Planning Officer in Coimbatore. These included Rs 20.90 lakh allegedly received in July 2021, Rs 27.25 lakh in August 2021 and Rs 27.30 lakh in September 2021.
According to the FIR, the transactions were allegedly admitted or explained by D Ramesh during questioning by the ED.
The agency further referred to alleged payments involving VR Water Infra. Chats allegedly showed collections 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 inquiry 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 said the material collected during the detailed inquiry prima facie indicated an organised conspiracy to manipulate government tenders and award contracts to pre-decided bidders, while allegedly collecting illegal gratification at rates ranging between 7.5% and 10% of contract values.
The agency has registered offences relating to criminal conspiracy, criminal breach of trust and cheating under the Indian Penal Code and the Bharatiya Nyaya Sanhita, besides provisions of the Prevention of Corruption Act.
~ Besides Nehru, the FIR names his brothers Manivannan and Ravichandran, aide Kavi Prasad, former MLAs S Sudarshanam and JJ Ebenezer, TVH Group executives, and civic engineers
~ Specific contracts, including the Chennai stormwater drains and Madhavaram booster O&M works, were allegedly pre-allocated to chosen bidders weeks before tenders were formally opened
~ The 258-page ED dossier details financial records from recovered phones showing systematic collections totalling Rs 11.98 crore and disbursals of Rs 11.67 crore across multiple municipalities