‘Voluminous Details On Record’: Madras HC Orders FIR Against TN Minister KN Nehru’s Municipal Administration Dept In ‘Cash-For-Jobs’ Scam

Chennai: The Madras High Court on Friday directed the Directorate of Vigilance and Anti-Corruption (DVAC) to register a case forthwith based on information shared by the Directorate of Enforcement (ED) on October 27, 2025, regarding alleged cash-for-jobs and recruitment irregularities in the Municipal Administration and Water Supply Department led by Minister KN Nehru.

A division Bench comprising Chief Justice Manindra Mohan Shrivastava and Justice G Arul Murugan observed that the “voluminous materials” placed on record by the ED were sufficient to warrant the immediate registration of a case. The matter pertains to alleged irregularities in appointments and financial transactions within the Municipal Administration and Water Supply Department, which is headed by Minister KN Nehru.

‘Party Fund Collections, Excel Ledgers’: What ED Highlighted

In its detailed communication, the ED placed on record what it described as a structured mechanism of tender manipulation within the Municipal Administration and Water Supply Department.

The agency stated that forensic examination of seized mobile phones and digital backups revealed chats, calculation sheets and excel ledgers allegedly documenting systematic bribe collections in the name of “party fund”.

According to the ED, contracts were allegedly pre-finalised even before bid deadlines, with selected contractors’ names reflected in internal communications. The agency claimed that contractors would first “check availability” of tenders through intermediaries before submitting bids and in some instances, advances were allegedly collected even before official tender closure.

‘Percentage-Based Collections’

The ED stated that bribes were allegedly fixed between 7.5% and 10% of total contract value. Seized excel sheets, as per the ED note, allegedly recorded contract value, percentage applied, amount received and balance outstanding.

Among the specific financial entries cited by the ED were a Rs 35 crore contract allegedly reflecting Rs 2.62 crore as “party fund” (Rs 2 crore paid; Rs 62 lakh balance). Similarly, a Rs 9.19 crore contract allegedly reflecting Rs 91.96 lakh (10%), a Rs 8.68 crore contract allegedly reflecting Rs 86.85 lakh (10%), and a Rs 525.31 lakh package allegedly showing Rs 55.15 lakh calculated, with partial payment recorded.

Separate entries have been mentioned allegedly showing Rs 27.82 crore collected across contracts linked to certain contractor groups.

While the ED note does not declare a single consolidated total, the specific entries and project clusters cited in the communication indicate alleged collections running into several tens of crores of rupees, with individual project-linked calculations ranging from lakhs to multiple crores. The HC described the material as “voluminous” and sufficient to indicate cognizable offences requiring FIR registration.

ED Note Names Minister’s Associates, Intermediaries

In its communication, the ED has identified multiple individuals whose digital devices, chats and financial records allegedly form part of the evidence.

The agency states that searches were conducted at premises linked to relatives and associates of Minister KN Nehru who heads the Municipal Administration and Water Supply Department. The ED does not record a judicial finding but alleges that materials recovered during searches point to a larger tender-linked collection mechanism.

Described by the ED as a key intermediary, Kavi Prasad’s mobile phone data allegedly contained chats discussing tender allocation, contractor coordination and percentage-based “party fund” calculations. The ED claims contractors communicated with him regarding the status and “availability” of tenders.

According to the ED, D Ramesh maintained financial tracking sheets of alleged collections. The ED alleges that excel sheets recovered from digital devices reflected detailed contract-wise calculations, including percentage applied, amount received and balance outstanding. 

While not all are publicly detailed in the summary communication, the ED alleges that confidential tender documents and project updates were shared outside official channels and that some IAS and IPS officers allegedly communicated project-related developments with private intermediaries.

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