C Shivakumar @ CHENNAI
Enforcement Directorate has seized a sum of `81.7 lakh, foreign currency, including British pounds, worth `13 lakh and frozen fixed deposits worth `41.9 crore during searches at seven locations linked to Higher Education Minister K Ponmudy and his son Gowtham Sigamani on Monday. The case pertains to alleged illegal issuance of red sand mining licences to his relatives and benamis between 2006 and 2011 when Ponmudy was minister of mines.
ED's confirmation on the seizures could spell trouble for the minister, who has been grilled by the Central agency for nearly 20 hours from Monday. Ponmudy and Sigamani were let off by the agency at 3.30am on Tuesday only to reappear after 12 hours.
The visibly tired 72-year-old minister and his son on Tuesday appeared six minutes before 4 pm at the Enforcement Directorate. Though ED did not furnish any details pertaining to searches in minister Senthil Balaji's home or his arrest, details about Ponmudy was shared by the agency after allegations were raised by the DMK.
ED said proceeds obtained from illegal mining were deposited in benami accounts and were layered through multiple transactions and accounts. "Two overseas entities, PT Excel Mengindo in Indonesia and Universal Business Ventures FZE in the UAE, were acquired. The Indonesian company was shown to have been purchased for a nominal amount of `41.57 lakh, and later sold for over `100 crore in 2022. It is suspected that huge sums of money were transferred through 'hawala' and infused in purchase of these overseas entities," the agency said.
According to sources, Sigamani made overseas investment of $1,00,000 (then `41,57,225) in March 2008 to acquire 2,45,000 shares of PT Excel Megindo, Jakarta, and $55,000 (`22,86,924) in Universal Business Ventures, United Arab Emirates, without RBI approval and thereby contravened the provisions of Section 4 of FEMA for the acquisition of foreign security. As a result of ongoing investigations, ED seized properties worth `8.60 crore belonging to Sigamani in October, 2020.
"During the search operation, unaccounted cash amounting to `81.7 lakh was seized, along with unexplained foreign currency, primarily in British pounds, equivalent to approximately `13 lakh from the residence of Ponmudy. In order to mislead the probe, a claim that the cash belonged to a family-owned hospital was made, and an attempt to falsify accounting records to introduce cash was detected by ED and prevented. A corroborating statement attesting the above facts was obtained from a person concerned. Thus, there is no plausible explanation for this unexplained cash seized from the residence of Ponmudy," the agency said in a statement.
ED said it has identified a trail of illegal proceeds derived from these activities, being used to acquire properties, companies and channelling into other investments. Various incriminating documents have been seized and are under analysis. A sum of `41.9 crore, identified as direct proceeds of crime, was also freezed under Section 17(1A) of PMLA as it was held in the form of a fixed deposit.
Ponmudy is an MLA from the Tirukkoyilur seat in Villupuram district while his 49-year old son Sigamani is a Member of Parliament representing Kallakurichi. DMK president and Chief Minister M K Stalin spoke to his cabinet colleague and assured him of the ruling party's total support in countering the BJP's "political vendetta." Stalin spoke to Ponmudy over phone and sought details of the ED probe, an official release said. He asked Ponmudy to face the issue bravely and legally.
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