The Madras High Court directed DVAC to file a criminal case against TN Minister KN Nehru based on ED inputs alleging large-scale corruption. The Court criticised the State for delay, saying the material clearly disclosed a cognisable offence and action should have been taken earlier.
The Madras High Court on Friday directed the Directorate of Vigilance and Anti-Corruption (DVAC) to register a criminal case against Tamil Nadu Municipal Administration and Water Supply (MAWS) Minister K N Nehru based on detailed inputs shared by the Enforcement Directorate (ED) alleging large-scale corruption.
A Bench comprising Chief Justice Manindra Mohan Srivastava and Justice Arul Murugan strongly criticised the State government for not acting earlier on the information given by the ED. The Court observed that the materials shared by the central agency clearly showed the commission of a cognisable offence and that a criminal case should have been registered without delay.
While passing the order in the case of Athinarayanan v. State, the Bench stated,
“The details shared and materials available reveal that those candidates got selected pursuant to the alleged transactions. And when a large-scale corruption stated to have happened involving several hundred crores of rupees, we find that source material is sufficient enough disclosing the commission of a cognisable offence for the purpose of registering a case,”
the Court observed.
The Court noted that the ED had already shared detailed source information with the State government on October 27, 2025 under Section 66(2) of the Prevention of Money Laundering Act (PMLA), along with extensive supporting documents and digital evidence.
Criticising the inaction, the Bench said,
“It was for the State to register a case on the detailed information shared by the Enforcement Directorate…and they could have thereafter concluded a detailed investigation to unravel the truth and bring the culprits to book,”
the Court said.
The judges made it clear that the ED’s communication could not be treated as a simple complaint requiring a long preliminary enquiry. Emphasising the seriousness of the matter, the Court stated,
“It is not a case where the authorities have received a bare complaint…it is a detailed source information provided by the Enforcement Directorate with a voluminous set of evidence…disclosing a cognisable offence,”
it said.
The Court further pointed out that since the State had already assigned the matter to the Vigilance Department, it was appropriate for that agency to move ahead and take necessary steps.
Accordingly, the High Court directed the DVAC to register a criminal case based on the ED’s communication dated October 27, 2025, carry out a detailed and time-bound investigation, and proceed further in accordance with law.
The matter arose from petitions seeking directions to register a First Information Report (FIR) based on the material provided by the ED, which flagged alleged large-scale corruption in the MAWS Department headed by Minister K N Nehru.
As per the ED’s investigation, digital evidence recovered during searches allegedly showed that bribes were collected in exchange for favourable transfers and postings of engineers and other officials.
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The agency is said to have found hundreds of transfer and posting orders in electronic devices seized from close associates, with alleged bribe amounts ranging from a few lakhs to several crores for each posting.
The ED also raised concerns over alleged irregularities in awarding municipal contracts. According to the agency, kickbacks were allegedly collected as a percentage of the contract value, and the money was routed through a network of associates.
A copy of the detailed judgment is awaited.
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