The Madras High Court on Friday asked the Central Bureau of Investigation (CBI) to go into the allegation that Tamil Nadu Chief Minister Edappadi K Palanisamy had awarded multi-crore road contracts to his relatives.
The court ordered the CBI probe after Directorate of Vigilance and Anti-Corruption informed it on Tuesday that no congnisable offence had been made out in the complaint made by DMK organising secretary R S Bharathi .
In his complaint Bharathi said Palanisamy, who is also holding highway portfolio, had abused his position to award contracts worth over Rs 3,120 crore to firms owned by his relatives and his benamis.
Justice Jagdish Chandra said he was transferring the case to the CBI in the interest of justice and to ensure a free and fair investigation.
Bharathi moved the High Court after DMK president and leader of the Opposition MK Stalin’s detailed to Governor Banwarilal Purohit last July evoked no response.
In his petition to the Governor, Stalin cited recent income-tax raids on the premises of SPK group of companies — a leading contractor that takes up government contracts.
Stalin said the searches yielded Rs 180 crore and 105 kg gold and the companies that came under the I-T scanner were SPK Spinners Private Ltd, SPK Hotels, SPK and Co Expressway Pvt Ltd, and Sri Balaji Tollways Pvt Ltd.
Stalin said Nagarajan Seyyadurai, the managing director of these companies, was a partner in Ventakachalapathy and Co, a firm run by P. Subramaniam, the father-in-law of the Chief Minister’s son Mithun.
He said road road contract works to the tune of Rs 3,120 crore were awarded to Venkatachalapthy and Co and SPK and Co., which were controlled by Mr. Nagarajan Seyyadurai, Mr. Subramaniam and sand mining baron Shekar Reddy.
Palaniswamy, the DMK leader alleged, had obtained pecuniary advantage by misusing his office.