Aiadmk Government (2016- 2020)

LARGE SCALE CORRUPTION BY CHIEF MINISTER AND THE COUNCIL OF MINISTERS OF AIADMK GOVERNMENT (2016 - 2020)

- Representation by D.M.K.

INDEX

S.NO CONTENT PAGE NO

1. REPRESENTATION 4

2. CORRUPT ACTIVITIES OF HON’BLE CHIEF MINISTER THIRU. EDAPADI K.PALANISAMI

a) CORRUPTION IN AWARD OF TENDERS TO HIS 6 RELATIVES

b) CORRUPTION IN FREE PDS 10 RICE SCHEME GIVEN BY THE CENTRAL GOVT

c) CORRUPTION IN HIGHWAY 16 TENDERS

d) DISPROPORTIONATE 20 ASSETS 3. CORRUPT ACTIVITIES OF HON’BLE DEPUTY CHIEF MINISTER THIRU. O. PANNEERSELVAM 30

a) DISPROPORTIONATE ASSETS 35

b) CONFLICT OF INTEREST, QUID PRO QUO 39

c) BRIBE PAID BY U.S. COMPANY TO EB AND PLANNING PERMISSION ETC.,

4. CORRUPT ACTIVITIES OF HON’BLE MINISTER FOR MUNICIPAL ADMINISTRATION THIRU. S. P. VELUMANI

a) LARGE SCALE CORRUPTION IN ALLOTTING CONTRACTS TO 41 HIS BENAMIES 47 b) FIXATION OF LED LAMPS

5. CORRUPT ACTIVITIES OF HON’BLE MINISTER FOR ELECTRICITY THIRU. P. THANGAMANI 54 a) IMPORT OF COAL

b) BID QUALIFICATION 56 REQUIREMENT (BQR) & INAPPROPRIATE PRICE MANAGEMENT

57 c) CONTRACT MANAGEMENT FOR IMPORT OF COAL 58 d) IMPORT OF LOW-GRADE COAL

60 e) EID PARRY CONTRACT 62 f) CORRUPTION IN PURCHASE OF SPARE PARTS - M/s. BHEL (BHARATH HEAVY ELECTRICALS LIMITED)

65 g) CORRUPTION IN WIND ENERGY- IBPIL

6. CORRUPT ACTIVITIES OF HON’BLE MINISTER FOR FOOD 67 AND CIVIL SUPPLIES THIRU. R. KAMARAJ

7. CORRUPT ACTIVITIES OF HON’BLE MINISTER FOR HEALTH 70 THIRU. DR. C. VIJAYA BHASKAR

8. CORRUPT ACTIVITIES OF HON’BLE MINISTER FOR 72 REVENUE THIRU. R. B. UDHAYAKUMAR

9. CORRUPT ACTIVITIES OF HON’BLE FISHERIES MINISTER 82 MR.D.JAYAKUMAR

10. CONCLUSION 97

Date : 22-12-2020.

To Hon’ble Governor, State of Tamil Nadu Governor’s Secretariat, Raj Bhavan, Chennai – 600 022 [email protected]

Your Excellency,

Vanakkam. Sub : Representation against the Council of Ministers, Government of Tamil Nadu for corruption, abuse of public office and obstruction of justice and other criminal offences

1. We are sending this representation in light of the continued obstruction of legal proceedings by the Council of Ministers of the Government of Tamil Nadu by influencing the Police Department, the Directorate of Vigilance and Anti- Corruption and the State Vigilance Commission in order to prevent registration of First Information Report (F.I.R) and thereafter, any impartial and fair investigation into allegations of corruption against them. 2. While doing so, the Council of Ministers, led by the Hon’ble Chief Minister, have continued to exert undue influence on public servants in order to stop them from taking action against organized plunder of the public exchequer. As such, these actions have broken the backbone of the principle of accountability, which is enshrined in the Constitution of India, various statutory enactments,

the diktats of the Hon’ble Supreme Court of India (notably, in Vineet Narain - vs.- Union of India) and the Hon’ble High Courts. 3. As your Excellency is the head of the Executive of the State, a constitutional duty is cast upon you to ensure the probity and integrity of the Council of Ministers, upon whose aid and advice the Government of the State is conducted. At present, the police and vigilance authorities and also, the prosecution is directly under the control and supervision of the Council of Ministers, particularly the Hon’ble Chief Minister, to whom all of the heads of the aforementioned departments report. 4. In summary, these are cogent allegations of serious and cognizable criminal offences, which are being levelled against the members of the Council of Ministers. A bare reading of these allegations would reveal and establish prima facie cases of acts of corruption, accumulation of assets disproportionate to known sources of income and other offences punishable under the Prevention of Corruption Act 2018, unlawfully influencing commercial tenders leading to breach of Transparency in Tenders Rules 2000, misappropriation of public funds, criminal breach of trust as a public servant and other offences under the Indian Penal Code 1860, etc., are detailed in this Representation, for your knowledge and swift action. 5. So far, the DravidaMunnetraKazhagam (“DMK”), through its Organziation Secretary, Thiru. R.S. Bharathi (Member of Parliament) has filed complaints against seven Ministers namely, Mr. Edapadi K Palanisami, Mr. O.Paneerselvam, Mr. P. Thangamani, Mr. S.P. Velumani, Dr. C. Vijayabhaskar and Mr. R. B. Udhayakumar. Similarly, Mr. Appavu ex-MLA had filed a complaint against Thiru.R. Kamaraj. Furthermore, Mr. S. Sudharsanam MLA and Mr. Tha. Mo. Anbarasan MLA (both, belonging to the DMK) have filed complaints with regard to the corruption in procurement of walkie-talkies and bribes paid by Cognizant Technology Solutions. 6. In spite of our actions in bringing these allegations along with specific and verifiable details to the information of the law enforcement agencies, there has been little or no progress in terms of registration of FIR or conduct of an independent and reliable investigation. As such, we have reasons to believe that the Council of Ministers is preventing the law from taking its course and that this is a further and more serious criminal act being coordinated under the leadership of Mr. Edapadi K. Palanisami. 7. Therefore, we submit a compilation of these complaints in the hope that you, as the Head of the Executive, will initiate enquiry, insulate the law enforcement agencies from external influence and establish the rule of law in the State of Tamil Nadu:

I. HON’BLE CHIEF MINISTER THIRU. EDAPADI K. PALANISAMI

A. CORRUPTION IN AWARD OF TENDERS TO HIS RELATIVES

1. A complaint was given by Thiru. R. S. Bharathi, MP on 13.06.2018 against the Chief Minister to the Director, Directorate of Vigilance and Anti-Corruption. No action was taken by the Directorate, forcing Thiru. Bharathi to approach the Hon’ble High Court in Crl. OP. No. 20711 of 2018.

2. The Directorate which did not show any inclination to investigate the complaint showed unusual alacrity at the instance of the Minister and closed the complaint without registering any First Information Report and examining witnesses during the pendency of the petition before the Hon’ble High Court.

3. The Hon’ble High Court allowed the petition filed by Thiru. Bharathi and transferred investigation of the complaint to the Central Bureau of Investigation. Even while the Minister himself has obtained a stay of the Hon’ble High Court’s order from the Hon’ble Supreme Court in SLP (Crl.) No. 9548 of 2018, the Directorate of Vigilance and Anti-Corruption, at the instance of the Minister, has also been forced to file a separate petition in SLP (Crl.) No. 9005 of 2018 in order to shield the Minister from liability.

4. The gist of the allegations in the complaint is as follows:

a) Thiru. Edapadi. K. Palanisamy, being a public servant, entered into a criminal conspiracy with Chandrakanth Ramalingam, P. Subramaniam, P.Nagarrajan, J.Sekar @Sekar Reddy and the firms, M/s Ramalingam & Company, SPK an Company Expressway Private Limited, and Balaji Toll Ways (Madurai) Private Limited, abused his official Position as Chief Minister and Minister for Highways and Minor Ports and thereby committed criminal misconduct, obtained undue pecuniary advantage for himself and thus committed offences punishable under Section 120-B of IPC and 13(1) (d) r/w 13(2) of the Prevention of Corruption Act, 1988. b) Thiru. Palanisami was the Highways Minister during the period from 2011 to 2016 when late Selvi. J. Jayalalitha was the Chief Minister. As Highways Minister, he had control over the award of Government contracts for laying roads under the Highways Department. c) The above contracts have been awarded to these two firms at an inflated rate thereby causing undue pecuniary advantage to them only because the two firms are controlled by persons who are closely related to Thiru. Palanisami’s son Mithun. The modus, it appears is to eliminate and dissuade all eligible contractors from participating in the bid by adopting intimidating tactics.

ORIGINAL INCREASED PROJECT CONTRACTORS PROJECT PROJECT S.NO. DETAILS INFORMATION VALUE VALUE

1. SH- 37 M/s Ramalingam & co Rs. Rs. 1515 stretch of ownedby one 713.34 crores highway ChandrakanthRamalinga Crores from Oddan m who is related to Shri chatram- EdapadiK.Palanisamy Dharmapura through his son mAvinashipa Mr.Mithun layam Total kms:- 37- 400 to 108- 400 stretch 70.20 kms 2. SH-39 Venkatachalapathy Rs.407. Rs. 720 stretch of Constructions owned by 6 crores crores highway P. Subramaniam who is with with fromThirunel the direct in law of Shri additiona additional veliSengottai EdapadiK.PalanisamyAp l cash cash grant - Kollam art from Subramaniam grant of of Rs. 180 Total kms:- the other partner in this Rs. Crores 5.000kms to firm is one S. Nagarajan 179.94 50.600 kms who own SPK & Crores stretch is Company Expressway 45.64 kms Private Ltd. 3. Four laning Shri. Balaji Toll ways Rs. 200 Additional Rs. of Madurai private Limited. P. Crores 18.57 crores ring road Subramaniam ( in-law of by a G.O. Shri.EdapadiK.Palanisam dated y)S. Nagarajan (Benami 16.05.2018 of Palanisamy) J. Sekar @ Sekar Reddy are the directors of this firm.

4. Six laning of SPK & Company Rs. 200/- Vandalur – Expressway Private crores Walajabad Ltd.owned by S.

from 47.000 Nagarajan (benami of to 63.800 Edapadi. K. Palanisamy) kms

5. Maintainanc SPK & Company Rs. e of all Expressway Private 2000 StateHighwa Ltd.owned by S. crores ys roads in Nagarajan (benami of Ramanathap Edapadi. K. uram,Thiruv Palanisamy)the project allur,Krishna was subsequently sub- giriand contractedto Virudhunaga Venkatachalapathy and r districts. Company owned byP. Subramaniam who is the direct in law of Shri EdapadiK.Palanisamy

B. CORRUPTION IN FREE PDS RICE SCHEME GIVEN BY THE CENTRAL GOVT

The Union Government by its policy decision had decided to distribute 5kg rice to each beneficiaries under TPDS (AAY & PHH) card holders at free of cost for three months from April, May and June 2020 as additional allocation of food grains and distribution under the PRADHAN MANTRI GARIB KALYAN ANNA YOJANA (in short PMGKAY) to each State and UTs. Tamil Nadu state is one among them. Accordingly, the Union of India issued order under its Ministry of Consumer Affairs, Food and Public Distribution Department of Food and Public Distribution in vide ref. No. F.No. 7- 1/2019 (ii) – BP.III, dated 30.03.2020. The Ministry advised all the State and UT governments to lift additional allocation together with the monthly allocation under National Food Security Act (in short NFSA) within timelines. It is very clearly mentioned that the free rice for AAY and PHH – UPDS family card holders/beneficiaries shall be distributed 5kg per person to each of the beneficiaries for three months (April, May and June 2020). Further the Annexure of the said order has given clear details of number of beneficiaries/persons to each State and UTs vice for the additional free rice. As per the order dated 30.03.2020 of Union of India, the breakup of the number of beneficiaries and quantum of the additional free rice 5kg per person for our State is hereunder:

DETAILS OF TAMIL NADU PDS FAMILY CARD HOLDERS UNDER PMGKAY

1. No. of persons in AAY card holders in TN 73, 27,000 2. No. of persons in PHH card holders in TN 2,84,07,000 The total No. of beneficiaries per month : 3,57,34,000

1. Rice 5kg per person of AAY card holders : 36,635.19 MTs 2. Rice 5kg per person of PHH card holders : 1,42,033.37 MTs Total amount of free rice per month : 1,78,668.56 MTs

2. Accordingly the Union of India allotted additional free rice to our State to distribute to (1,78,668.56 X 3 months) 5,36,005.68 MTs for 3.57 crores of beneficiaries i.e. 5kg per person to AAY & PHH PDS card holder families for three months i.e., April to June 2020.

3. Our State have issued 3 categories of PDS cards to the 2.08 cr families. The 3 categories are (1) AAY- Andhyodaya Anna Yojana, (2) PHH - Priority Household card and (3) NPHH – Non-Priority Household cards. Our State is having policy of distributing rice to all 3 categories of card holders at free of cost. Hence Government decided that the NPHH family PDS card holders also would get the same quantum of additional free rice as the AAY & PHH card holders in our State for three months. Therefore, it enumerated the NPHH UPDS card holds as 85,99,301 in our State.

4. Consequent to the order of Union of India dated 30.03.2020, Co-operation, Food and Consumer Protection Department of our State Government issued government order in vide G.O.(Ms).No. 52, dated 27.04.2020 agreed to lift the total additional allocation of 1,78,668.56 Mts free rice and distribute the same to AAY and PHH card holders’ each family members to 5kg per member for April to June,20. Further the Government decided to purchase and distribute additional free rice of 5kg per person to 85,99,302 NPHH-UPDS family card holders for three months i.e. 66,271 MTs (per month) @ Rs.22/- per kg from Food Corporation of India which cost a sum of

Rs.146 crores per month and total cost for three months rice comes to Rs. 438 cr to total quantum of rice 1,98,813 MTs. Further, it is to be noted that the authority expressed its inability to lift additional allotted free rice for AAY & PHH card holders and has not yet been lifted and distributed, and also not yet purchased the1,98,813 Mts additional rice for NPHH card holders as on 27.04.2020.

5. While it being so, on 22.05.2020, the Hon’ble Minister for Food and Civil Supplies Mr. R. Kamaraj issued a press release bearing PR No. 359 where he claims that it was his submission to the Hon’ble Minister for Consumer Affairs, Food and Public Distribution System of Union of India during video conference (no date is mentioned when the said video conference was held) that as on 22.05.2020 the additional allocation of free rice 5,01,649 MTs was lifted out of total 5,36,005 MTs free rice of 5kg per person and 96.3% of beneficiaries (AAY & PHH UPDS card holders) were distributed in the month of April and 85% of beneficiaries were distributed for the month of May as on 21.05.2020.

6. The Hon’ble Minister Mr. R.Kamaraj surreptitiously suppressed his statement dated 22.05.2020 that the corruption of selling the additional free rice in open market which was allocated under the PMGKAY-NFSA scheme to distribute the AAY & PHH card holders of Tamil Nadu. Because on 27.04.2020 his department pleaded to the Central Government that “ as due to short time period available for mobilization of this huge stock of rice from the FCI to Tamil Nadu Civil Supplies Corporation godowns and then from Tamil Nadu Civil Supplies Corporation godowns to the respective fair price shops. Additional entitlement of rice allotted for April 2020 which remains undrawn as per the revised entitlement issued under this

Government Order can be drawn by the card holders in the Months of May and June 2020 along with revised entitlement. ” But within about 20 days, he claimed that he lifted free rice of 5,01,649 Mts rice and distributed the same to AAY & PHH UPDS card holders totalling 96.3% of beneficiaries in April and 85% of beneficiaries in May. He issued such statement intentionally to coverup his wrongful gain of huge money and corruption by selling the said rice in open market. The statement of the Minister for Food and Civil Supplies Mr. R.Kamaraj in his PR No. 359, dated 22.05.2020 was evidence of conspiracy to smuggle and sell the entire additional allocated free rice in open market. And in the same statement, he said that additional rice for NPHH card holders of 1,98,813 MTs was just purchased. He did not mention it was lifted and distributed to the beneficiaries of NPHH card holders as on 22.05.2020. Hence, it is evident that the additional free rice for NPHH card holders were not distributed as on 22.05.2020.

7. Further the Hon’ble Chief Minister has also common intention with ulterior motive of supporting the Hon’ble Minister R. Kamaraj to sell free rice and purchased rice in open market to get wrongful gain. Hence, to support Mr. R. Kamaraj, on 19.06.2020 the Hon’ble Chief Minister issued his press release bearing PR No. 438 where he mentioned particularly that all NPHH card holders (85,99,302 card holders) were distributed free rice of 5kg per person for the 3 months. He cleverly omitted to mention that the additional free rice of 5kg per person per month for the three months was distributed to all AAY & PHH UPDS family card holders. When the additional rice of 1,98,813 MTs was not purchased as on 27.04.2020 and as per statement of Minister R. Kamaraj dated 22.05.2020 he said the additional rice was just purchased as on 22.05.2020, but it

14 was not lifted from FCI godowns and not distributed to the NPHH beneficiaries as on 22.05.2020. Therefore, the Hon’ble Chief Minister and Hon’ble Minister for Food and Civil Supplies Mr. R. Kamaraj had jointly and severally sold the free rice and purchased rice for the beneficiaries in open market by which they gained wealth illegally.

8. There is a huge scam and corruption going on by cheating the public by the Hon’ble Chief Minister and Minister Mr. R. Kamaraj. Enquiries reveal that the Thooththukudi CSCID wing police intercepted the PDS rice and found about 2,100kg PDS rice at one private rice mill illegally for polishing the same to re-pack as 5kg, 10kg and 20kg bags in various brands to sell the same in open market @ Rs.30/- to Rs.40/- per kg. This rice was directly brought from the TNCSC godowns with assistance of TNCSC employees. The FIR states that they used to record as if the rice was distributed to card holders and then they unloaded the rice in such private rice mills from TNCSC godowns. The CSCID wing registered this crime in FIR as FIR No. 72 of 2020, dated 13.06.2020 and seized the PDS rice along with lorry which smuggled the rice.

10. The reputed print media ‘Tamil Hindu’ dated 03.07.2020 published a news article that still rice was not distributed to UPDS card holders/beneficiaries and those to whom free rice was not distributed, will be given time till 10.07.2020. Further another reputed print media in English newspaper Times of India published that about 80% of UPDS card holders were not distributed the amount of Rs.1000/- which was meant for the month of June 2020 and also states the about 6.4 lakhs of families of Chennai have been unavailable to distribute dole for the month of June 2020. Therefore, the press releases of the Hon’ble Chief Minister and Hon’ble Minister

R.Kamaraj are false and it was meant to cover up of selling the additional free rice in the open market to swindle the public exchequer money by abusing their official position.

11. This has caused loss of nearly 450 crores of Public Exchequer.

C. CORRUPTION IN HIGHWAY TENDERS

1. The Principal Secretary to Government , Highways and Minor Ports Department had issued of G.O. Ms No. 40 Highways and Minor ports (HQ1) department dated 19/2/2020 and subsequently The Superintendent Engineer, Construction and Maintenance, Highways Department, Trichy issued a Tender notice bearing Tender notice number 37/2019-2020/HDO dated 25/02/2020. 2. The tender notice dated 25.02.2020 The Superintendent Engineer has invited tenders for the subject work for initial rectification including widening, strengthening and Improvements and Performance Based Maintenance Contract(PBMC) for a period of 60 months(5 years) in the State Highways and the Major District Roads for a length of 462.211 KM in Thanjavur, Orathanadu, Pattukottai and Peravoorani, Sub Divisions of Thanjavur [H] C & M, Division. The tender notice invites Scheduled Tender under two sealed cover system through online only i.e., Pre-Qualification schedule and financial cover containing price bid document of tender (Item rate tenders). The EMD (Earnest Money Deposit) was fixed at Rs. 582.60 lakhs and the estimated amount of the tender was fixed at Rs.116500.00 lakhs(Rs. 1165 crores).The tender documents were made available upto 15.00 hrs on 15/04/2020 and the bids were to be submitted through online upto 15.00 hrs on 15/04/2020. 3. Although what was unusual about this tender was till now road laying and maintenance of state and national highways roads have been on the basis of annual tenders but this particular G.O and subsequent tender notice was for a period of 5 years. And this G.O.(Ms) No.40,Highways and Minor Ports (HQ1) department dated 19.02.2020, to undertake Ordinary Maintenance, initial Rectification

Works, Periodic Maintenance Work on select road totalling approximately 462.211 KM in Thanjavur District. The maintenance work will also include cross drainage works, minor work on the bridge and road side maintenance within the select road limits. Ordinary maintenance will be payable as proportionate monthly lumpsums over the 5 years period of the Contract. 4. The Superintending Engineer, Highways Department , (Construction and Maintenance), Trichy, had issued a Tender Notice No, 37/2019-2020/HDO dated 25.02.2020 inviting Tender works for the purpose of introducing for the first time Performance Based Maintenance Contract [PBMC] tender system and the same is aimed to create a monopoly of only big contractors, with the intention of supporting contractors who are in the ruling party or close to the ruling party. This has affected the small contractors who would always bid for an annual tender instead of a 5 years tender which was never in practice. 5. This monopoly for contractors who are in the ruling party or close to the ruling party is being created adverse to the interests of the state exchequer. Rs. 1165 crores is being allotted to one contractor for the work which is usually done by several Class - I contractors in small bits and lots annually under the direct supervision of sub-divisional officers. Now without any proper reason the system is being changed for allotment of one big lot of 462.211 Kms in Thanjavur, Orathanadu, Pattukottai and Peravoorani sub- divisions of Thanjavur (H) C&M division. 6. This has been done by the department in a hurried manner even G.O and tender notice there is a discrepancy of Rs. 74.68 Crores in the value of the cost of the work for 462.211 kms. As per the G.O. the value of the work is Rs. 1239.68 crores and as per the

18 tender notice it is 1165 crores. The value of the work has been hiked in the government order and this is detrimental to the public interests and the state exchequer. The same work done annually would cost just about 75-100 crores and for 5 years (60 months) including maintenance would not exceed Rs.500 crores. Thus an excess of Rs. 700- 800 crores is in-built in the shift to 5 year tender terms. 7. What makes all these action even more suspicious is if the value of the tender is more than 500 crores, the same has to be published prominently in various national dailies in English and Vernacular languages. This has not been done intentionally. And the present situation of spread of the COVID-19 virus the state is under quarantine and sec. 144 Cr PC has been passed for the entire state. From 20 th March onwards the state was under travel restrictions and it was impossible to prepare the papers and file the tender bid. However regardless of all this affecting the competition the department have hurriedly processed opening the tender even during this lock-down period. And it is learnt that only two pre-determined favoured bidders who have all the papers ready for making their bid had filed the tenders. It seems that the contractor was decided by the ruling party even before issuing the G.O and tender notice. Even at a time of crisis the Government body is being used to mint money through ponzi schemes and projects which only enriches few companies which are run by ruling party, people close to the ruling party and benamis of the Cabinet Ministers, in this case Hon’ble Chief Minister of Tamil Nadu himself. 8. The department would normally seek pre-qualification of specific experience of the contractor that he should have successfully completed contract in any one year within the last five years for a value of atleast 40% of total contract value of the project, but this

19 tender notification had only fixed 25% of total cost as pre- qualification which is contrary to their earlier tender notification. 9. The cost indicated in the G.O. is exorbitant and there is an inbuilt excess of Rs. 700- 800 crores in the shift to 5 year tender terms.The same work done annually would cost just about 75-100 crores and for 5 years (60 months) including maintenance would not exceed Rs.500 crores. Thus an excess of Rs. 700- 800 crores is inbuilt in the shift to 5 year tender terms. 10.In the wake of the funds crunch due to COVID-19 the central government has sent an advisory to the NHAI and all State governments to explore the road infrastructure construction cost and avoid fresh investments in huge projects. When we are facing lack of funds to get over this pandemic situation and the state government have been requesting funds from the central governments these type of projects only showcases the corruption and greediness of the Ruling Party to amass wealth even at the time of crisis. 11. Mr.R.S.Bharathi has lodged a complaint with DVAC, Since there was no action he had filed a petition before the Hon’ble High Court to register a case in W.P.No. 8080/2020. However since it was represented that the tender itself was cancelled the Petition was dismissed as withdrawn. However the same methodology was adopted and the tender was allotted in favour of benami companies of the CM on 18/11/2020 and 19/11/2020. The approximate value of the corruption amount is 1500 Crores,in this project alone.

D. DISPROPORTIONATE ASSETS 1. In 2016, Thiru.K.Palanisami declared in his election affidavit that

his income for 2015-2016 was Rs. 3,17,901/- and HUF business

income for the period of 2015 -2016 is Rs.2,77,393 and agriculture

income is Rs.9,75,000/-. Further, Thiru.K.Palanisami claimed source

of income through Balaji Metals partnership concern. As far as his

wife’s source of income for the period of 2015-2016 through

business is Rs. 2,51,736/- and agriculture income is Rs. 1,90,000/-

and his son’s source of income for the period of 2015-2016 through

business is Rs. 6,70,156/- and agriculture income is Rs. 3,75,000/-

and daughter in law’s sources of income for the period of 2015-2016

is Rs. 46,25,993/-. Further, his mother has no source of income. She

has not filed income tax return and she is not an Income Tax

assessee.

2. The said benamis acquired wealth from 28.04.2016 to as on date

through his unknown source of income and the details of assets

through his close relatives and the benamis are here under.

Mr.Vetrivel Easwaramoorthy and Mr. N.R.Suriyakanth are the

Directors of SPAC Starch Products (India) Ltd while

Mr.VetrivelEaswaramoorthy is Thiru. Edapadi K.Palanisamy’s own

sister’s son (nephew) and Mr.N.R.Suriyakanth is co-brother of

Mr.Mithun who is son of Thiru. EdapadiK.Palanisamy .The said

BinamiesMr.VetrivelEaswaramoorthy and Mr.N.R.Suriyakanth have

no sources of income for the previous years. On behalf of Thiru.

EdapadiK.Palanisamy, the benamies have purchased the following

properties:

S.NO. SALE DEED BENAMI TRANSACTIONS AND DATE Sale Deed 1 No.2631 of • Purchased by 1 2018 dated Thiru. EdapadiK.Palanisamy 20.09.2018 through his benami Mr.VetrivelEaswaramoorthy who is Chief operating Officer of SPAC Starch Products (India) Ltd. • purchased for a value of Rs.1,32,000/- (one lakh thirty two thousand only) • property has a market value of Rs.20,00,000/- (twenty lakhs only)

Sale Deed • Purchased by No.2632 of Thiru. EdapadiK.Palanisamy 2018 dated 2 through his benami 20.09.2018 Mr.VetrivelEaswaramoorthy who is Chief operating Officer of SPAC Starch Products (India) Ltd. • purchased for a value of Rs.20,88,000/- (twenty lakhs eighty eight thousand only) • property has a market value of Rs. 1,20,00,000/- (one crore twenty lakhs only)

• Purchased by Thiru. Sale Deed EdapadiK.Palanisamy through his

3 No.2893 of benami Mr.VetrivelEaswaramoorthy 2018 dated who is Chief operating Officer of 16.10.2018 SPAC Starch Products (India) Ltd. • purchased for a value of Rs.20,88,000/- (twenty lakhs eighty eight thousand only) • property has a market value of Rs. 1,20,00,000/- (one crore twenty lakhs only)

Sale Deed • Purchased by No.2433 of Thiru. EdapadiK.Palanisamy 2018 dated 4 through his benami 05.09.2018 Mr.VetrivelEaswaramoorthy who is Chief operating Officer of SPAC Starch Products (India) Ltd. • purchased for a value of Rs.12,43,500/- (twelve lakhs forty three thousand and five hundred only) • property has a market value of Rs. 40,00,00,000/- (forty crores only )

Sale Deed • Purchased by 5 No.2571 of Thiru. EdapadiK.Palanisamy 2018 dated through his benami 14.09.2018 Mr.VetrivelEaswaramoorthy who is Chief operating Officer of SPAC Starch Products (India) Ltd. • purchased for a value of Rs.2,52,000/- (two lakhs fifty two thousand only) • property has a market value of Rs.10,00,000/- (ten lakhs only)

Sale Deed • Purchased by No.2708 of 6 Thiru. EdapadiK.Palanisamy

2018 dated through his benami 28.09.2018 Mr.VetrivelEaswaramoorthy who is Chief operating Officer of SPAC Starch Products (India) Ltd.

• purchased for a value of Rs.18,72,000/- (Eighteen lakhs seventy two thousand only) • property has a market value of Rs. 1,20,00,000/- (one crore twenty lakhs only )

Sale Deed • Purchased by No.2717 of Thiru. EdapadiK.Palanisamy 2018 dated through his benami 01.10.2018 7 Mr.VetrivelEaswaramoorthy who is Chief operating Officer of SPAC Starch Products (India) Ltd. • purchased for a value Rs.50,95,500/- (fifty lakhs ninety five thousand and five hundred only) • property has a market value of Rs. 3,50,00,000/- (three crores fifty lakhs only )

Sale Deed • Purchased by No.2432 of Thiru. EdapadiK.Palanisamy 2018 dated through his benami 05.09.2018 8 Mr.VetrivelEaswaramoorthy who is Chief operating Officer of SPAC Starch Products (India) Ltd. • purchased for a value Rs.70,47,100/- (Seventy lakhs forty seven thousand and hundred only) • property has a market value of Rs. 4,00,00,000/- (four crores only)

Sale Deed • Purchased by 9 No.2316 of Thiru. EdapadiK.Palanisamy

2018 dated through his benami 23.08.2018 Mr.VetrivelEaswaramoorthy who is Chief operating Officer of SPAC Starch Products (India) Ltd.

• purchased for a value Rs.3,41,01,000/- (three crores forty one lakhs and one thousand only) • property has a market value of Rs. 20,00,00,000/- (twenty crores only)

Sale Deed • Purchased by No.3669 of Thiru. EdapadiK.Palanisamy 2018 dated 10 through his benami 20.12.2018 Mr.VetrivelEaswaramoorthy who is Chief operating Officer of SPAC Starch Products (India) Ltd. • purchased for a value Rs.8,20,000/- (eight lakhs twenty thousand only) • property has a market value of Rs. 70,00,000/- (seventy lakhs only)

Sale Deed • Purchased by No.2572 of Thiru. EdapadiK.Palanisamy 2018 dated through his benami 14.09.2018 Mr.VetrivelEaswaramoorthy who is Chief operating Officer of SPAC 11 Starch Products (India) Ltd. • purchased for a value Rs.21,16,000/- (twenty one lakhs sixteen thousand only) • property has a market value of Rs. 2,50,00,000/- (two crores fifty lakhs only)

Sale Deed • Purchased by No.1096 of Thiru. EdapadiK.Palanisamy

2019 dated through his benami 12 25.04.2019 Mr.VetrivelEaswaramoorthy who is Chief operating Officer of SPAC Starch Products (India) Ltd. • purchased for a value Rs.7,17,000/- (seven lakhs seventeen thousand only) • property has a market value of Rs. 80,00,000/- (eighty lakhs only)

Sale Deed • Purchased by No.1097 of Thiru. EdapadiK.Palanisamy 2019 dated 13 through his benami 25.04.2019 Mr.VetrivelEaswaramoorthy who is Chief operating Officer of SPAC Starch Products (India) Ltd.

• purchased for a value Rs.7,17,000/- (seven lakhs seventeen thousand only)

• property has a market value of Rs. 80,00,000/- (eighty lakhs only)

Sale Deed • Purchased by No.1098 of Thiru. EdapadiK.Palanisamy 2019 dated through his benami 25.04.2019 14 Mr.VetrivelEaswaramoorthy who is Chief operating Officer of SPAC Starch Products (India) Ltd. • purchased for a value Rs.7,96,000/- (seven lakhs ninety six thousand only) • property has a market value of Rs. 80,00,000/- (eighty lakhs only)

3. It is stated that this is only a tip of the ice berg and only a thorough probe and proper investigation will reveal the exact quantum of assets amassed by Thiru. Edapadi K Palanisami.

The vendors namely R.P.Selvasundaram ( R.P.P.

Constructions ) is one of the Benamies of Thiru. Edapadi

K.Palanisami, who are the main contractors in all over

Tamilnadu. The said Benamis are targeting agricultural land and are purchasing and registering sale deeds at much lower value than the actual market value. Further, all these agricultural lands are being used for commercial purposes without getting proper sanction from the concerned authorities.

The Agricultural lands are being exploited en masse by Thiru.

Edapadi K.Palanisami and his close associates which have deep socioeconomic effects in the state. The waste water is being discharged into villages without seeking permission from

Pollution Control Board. The total properties are worth more than Rs. 1000 Crores.

4. Thiru. Edapadi K.Palanisami has also acquired

wealth through his unknown source of income when he was

holding the Ministry for Highways and Minor Ports during 2011

to 2016 through Mr.P.Subramaniam, who is father in law of his

son Mr.Mithun. On behalf of Thiru. Edapadi K.Palanisami, the

benami had purchased the following properties:

S.NO. SALE DEED AND BENAMI TRANSACTIONS DATE

Sale • Purchased by Thiru. Deed No. 525 of Edapadi K.Palanisami through his benami 1 2015 dated Mr. P.Subramaniam, 22.01.2015 • purchased for a value of Rs.16,90,000/- (sixteen lakhs ninety thousand only ) • property has a market value of Rs. 20,00,00,000/- (twenty crores only )

Sale • Purchased by Thiru. 2 Deed No. 6378 of Edapadi K.Palanisami through his benami 2015 dated Mr. P.Subramaniam, 06.07.2015 • purchased for a value of Rs.13,77,000/- (thirteen lakhs seventy seven thousand only ) • property has a market value of Rs. 10,00,00,000/- (ten crores only )

3 Sale • Purchased by Thiru. Deed No. 6379 of Edapadi K.Palanisami through his benami 2015 dated Mr. P.Subramaniam, 06.07.2015 • purchased for a value of Rs.36,00,000/- (thirty six lakhs only ) • property has a market value of Rs. 30,00,00,000/- (thirty crores only)

5. Thiru. Edapadi K.Palanisami during his

second term as Ministry for Highways and Minor Ports

during 2016 to 2017 before he became Chief Minister of

Tamil Nadu had acquired 2 properties through

Mr.P.Subramaniam, who is father in law of his son

Mr.Mithun. On behalf of Thiru. Edapadi K.Palanisami, the

benami had purchased the following properties:

S.NO. SALE DEED BENAMI TRANSACTIONS AND DATE

Sale Deed No. • Purchased by 9653 of 2016 Thiru. Edapadi K.Palanisami dated 28.09.2016 through his benami Mr. P.Subra 1 maniam, • purchased for a value of Rs.8,55,000/- (Eight lakhs fifty five thousand only • property has a

market value of Rs. 7,00,00,000/- (seven crores only ) • Purchased by Sale Deed No. Thiru. Edapadi K.Palanisami 9654 of 2016 through his benami Mr. P.Subra dated 28.09.2016 maniam, 2 • purchased for a value of Rs.36,00,000/- (thirty six lakhs only ) • property has a market value of Rs. 30,00,00,000/- (thirty crores only )

HON’BLE DEPUTY CHIEF MINISTER THIRU.O.PANNEERSELVAM A.DISPROPORTIONATE ASSETS

1. A complaint was given by Thiru.R.S. Bharathi on 10.03.3018 against the Minister to the Director, Directorate of Vigilance and Anti- Corruption. No action was taken by the Directorate for several months due to which Thiru. Bharathi was constrained to approach the Hon’ble High Court in Crl. OP. No. 18091 of 2018 seeking action. The Hon’ble High Court was pleased to direct the Directorate of Vigilance and Anti-Corruption to inquire and register a First Information Report. 2. There has been no inquiry or registration of FIR in the complaint given by Thiru. Bharathi till date, in flagrant violation of the order passed by the Hon’ble High Court.

The gist of the allegations in the complaint is as follows:

Check Period 2011 to 2016 a) It is reliably learnt that Thiru. O.Panneerselvam had invested money and bought properties in the names of his wife, children, brothers Thiru. O.Raja, Thiru. O. Balamurugan and Thiru. O.Shanmugha Sundaram and their families and his business associates including Thiru. R. Subburaj and his wife Tmt. Uma Maheshwari. b) In the Affidavits filed before the Election Commission of India he has made several declarations by suppressing material facts and by making inconsistent statements which are inherently improbable and false. Some of the instances where he has made such declarations are as follows:

c) In 2016, he declared in his election affidavit that his income for 2014-2015 was Rs.5,80,875. However, this is a gross underestimation for the relevant year as his basic salary as an MLA (Rs. 55, 000 X 12) was itself Rs. 6, 60, 000. During this period, he was also the Chief Minister and hence, would have received a higher salary and other emoluments. During the same period he is said to have purchased Toyota Innova car (TN 04 AX 2345) worth Rs.17,85,655/- which is highly improbable considering the total income earned by him even as per his declaration. d) Thiru O.Panneerselvam acquired 4 acres and 60 cents of Punja lands in S.no. 1525 by virtue of a Partition deed dated 27/6/1994 bearing document no. 776/94. It appears he has sold 3 acres 60 cents by virtue of sale deed bearing document no. 1130/1996 and retained 1 acre in the said survey number. However in the affidavits filed before the Election Commission both in 2011 and 2016 he had not disclosed this property. The reasons for suppression of this fact has to be investigated. e) As regards the declarations made by Thiru. O. Panneerselvam in respect of his wife Vijayalakshmi’s property there is a steep raise. Mrs. P. Vijayalakshmi W/o. Thiru O.Panneerselvam owned a house which was bought by her on 2/11/1998 for Rs.2,71,225/-. In 2011 Thiru O.Panneerselvam declared the value of the house at Rs. 10,00,000/- that he had made improvement worth Rs. 5,00,000/- However in 2016 value of the same house was shown as Rs. 20,00,000/-. The increase in value raises doubt about the money spent for improvement during the interregnum. Another instance of false declaration in respect of his wife’s property is in the affidavit filed during the Election in 2011 where he had declared his wife’s loan from City Union Bank, George Town Branch as

Rs.2,81,314. Whereas records would reveal that his wife actually received Rs. 9,00,000/-. Likewise, in the very same affidavit he had declared his wife’s income as Rs. 36,251/- for 2005 & 2006, whereas the records show that he had paid income tax of Rs. 20,400/- for the same year which is improbable and unbelievable. In the affidavit in 2011, the value of his wife’s property is estimated as Rs. 24,20,000/- . In 2016 the properties value was shown as Rs. 78,00,000/- The steep increase in the value considering the fact that Mrs. P. Vijayalakshmi is a house wife and had no source of income raises a doubt about the source of acquiring the properties. f) That apart in the Election Affidavit filed in 2016 the value of land purchased in 2011 from one A. Kubendran was not shown as also the property purchased from one Subburaj in the year 2015 bearing document no. 1508/2014. g) It is reliably learnt that the following properties are held by Thiru O. Panneerselvam to his benamies (i) Bojarajan Mills in Theni district was leased 99 acres of land (valued at more than 140 crores) for 99 years by the Government. The lease ended in the year 2011-12. After that, it was purchased of Thiru. O. Panneerselvam at less than the prevailing market value of the land through his benamies. (ii) A mango grove of 150 acres of wetland situated in ShenbagaThoppu,Srivilliputhur is held by Thiru. O. Panneerselvam in the name of his benamies (iii) He controls the cardamom markets through his benamies in Bodinayakkanur by abusing his official position. (iv) His sons have invested in various companies and their source of such investments remain unexplained and needs thorough investigations.

(v) Thiru. O. Panneerselvam’s children, Thiru. P. Raveendranath Kumar, Thiru V. Jayapradeep and Tmt. Kavitha Banu are directors of various companies. They have made investments more than 200 crores in companies engaged in myriad range of activities not only in India but also in the U.S., Turkey, Indonesia and Malaysia. (vi) Thiru. O. Panneerselvam’s son V. Jayapradeep was not even 25 years of age before becoming a director of 3 companies: Willownet Exim Pvt. Ltd, Vijayanth Developers Pvt. Ltd and Vani Fabrics Pvt. Ltd. It is improbable that at this age he had the financial means to invest in these companies. (vii) Vani Fabrics Pvt. Ltd paid its directors, Thiru. P. Raveendranath Kumar and Thiru. V. Jayapradeep, three times the salary (Rs. 9, 00, 000) as other directors for the year 2015-2016. In fact, they were paid more than the managing director. These facts establish that the companies are being floated by the children of Thiru.O.Pannerselvam only to launder the illegal money obtained by corruption. (viii) Thiru. P. Raveendranath Kumar and Thiru. V. Jayapradeep bought several acres of land valued at Rs. 67, 26, 883 for themselves and also on behalf of JayamVijayam Enterprises. These transactions are undervalued and the source of money for these transactions is unknown. Door No. 113-114, Unit No. 801, 8 th Floor, Raheja Towers, Anna Salai is the address is the Registered Address of Xllent Marine Line Pvt. Ltd, and also, RIMART International Pvt. Ltd, Perigon IT Edu Pvt. Ltd although these companies have different directors and are engaged in completely different business activities.These companies and other companies like Paapa Builders Pvt. Ltd where associates of Thiru. O. Panneerselvam are directors and shareholders are not legitimately conducting any business

34 activity, accurately representing their true financial situation,complying with all laws including the Companies Act and acting as a conduit for laundering money on behalf of Thiru. O.Panneerselvam and his associates. h) Besides the above the said, Thiru O. Panneerselvam had indulged in abuse of power to obtain pecuniary advantage for his family members. i) His sons Thiru P.Raveendranath Kumar and Thiru V. Jayapradeep are directors in Vani Fabrics Pvt. Ltd. and have made substantial investments in the company. Through their shareholding in the above company, they also own shares in Veena Fabrics Pvt. Ltd. In order to obtain undue advantage to them, whenThiru. O. Panneerselvam was Chief Minister from 28.09.2014 to 22.05.2015, through G.O.(Ms) No. 45 dated 25.03.2015, the Value Added Tax for dealers on works contract relating to sizing of yarn and sale of cardamom were exempted and reduced from 5 per cent and 2 per cent respectively. This decision has cost the state thousands of crores in revenue while benefitting his and associates’ private financial interests. j) In Periyakulam, until July 12, 2017, Tmt. P. Viyayalakshmi owned 40 acres of land along the Varattaru river. In violation of the law, four bore wells were dug within just 50m of the river bank depleting the river and causing distress to surrounding farmers. After widespread protests, she transferred the land worth Rs. 23,66,290 to Thiru. R.Subburaj for 20,10,000.

k) A direct link connecting Thiru. O. Panneerselvam with illegal gratification for official favours was furnished by the diary maintained by Thiru. J. Sekar Reddy, partner of the SRS Mining Company. Investigation into the information in that Diary by the CBI

35 and the Income Tax Department is ongoing. According to the entries made in the diary, Thiru. O. Panneerselvam and his associates received almost four crores in just six months (June - November, 2016). The scale of corruption practiced by Thiru. O. Panneerselvam, as suggested by the diary for only a few months, is mind boggling.Thiru. O. Panneerselvam has betrayed the trust of his electorate and has instead sought to extend illegal favours to industrialists for his personal benefit.

B. CONFLICT OF INTEREST, QUID PRO QUO 1.One more complaint was given by Thiru. R.S.Bharathi on 22.05.2020 against the Minister to the Director, Directorate of Vigilance and Anti-Corruption. 2.There has been no inquiry or registration of FIR in the complaint given by Thiru. Bharathi till date in violation of the decision of the Constitution Bench of the Hon’ble Supreme Court in Lalita Kumari vs State of UP. The gist of the allegations in the complaint is as follows a) Use of Range Rover Recent media reports have revealed that the Deputy Chief Minister, Mr. O.Panneerselvam was seen traveling in Range Rover bearing registration number TN 05 CE 2345 (hereinafter, “Range Rover”). Road Transport Authority records show that this vehicle has been registered in the name of M/s Vijayanth Developers Private Limited (hereinafter, “M/s Vijayanth”). Ministry of Corporate Affairs website shows that M/s Vijayanth has three Directors:

Mr. JayapradeepPannerselvam

Mr. Raveendranath Kumar

Ms. Kavitha Banu

The three Directors, named above, are children of Mr. O. Panneer selvam. Mr. O.Panneerselvam has been provided with an official vehicle – Innova Crysta bearing registration number TN 06 BG 2345 – since 2017 and therefore, there is no cogent and believable reason why Mr. O. Panneerselvam has been using the Range Rover car which belongs to a private company (M/s Vijayanth). According to the financial documents submitted by the company to the Ministry of Corporate Affairs, the car was bought using a loan advanced by HDFC in February 2019 for a total sum of INR 63,52,779 /- (Rupees Sixty Three Lakhs, Fifty Two Thousand, Seven Hundred and Seventy Nine Only). b) Conflict of Interest

Mr. O. Panneerselvam has been serving as Deputy Chief Minister since August 2017 and holds charges of the following portfolios: Finance, Planning, Legislative Assembly, Elections and Passports, Housing, Rural Housing and Housing Development, Slum Clearance Board and Accommodation Control, Town Planning, Urban Development and Chennai Metropolitan Development Authority. These facts mentioned hereinabove have given rise to a number of serious issues of corruption and make out a prima facie case for initiating a criminal investigation inter alia into the following issues:

Mr. O.Panneerselvam (Deputy Chief Minister, Tamil Nadu), as a public servant, has obtained pecuniary benefit of over INR 62 lakhs by availing the use of Range Rover car which is owned by a private company i.e. M/s Vijayanth Developers Pvt. Ltd. M/s Vijayanth Developers Pvt. Ltd., a company which was dormant and no business activity from 2008 till 2017 is a shell company for laundering money.

M/s Vijayanth Developers Pvt. Ltd. obtained a bank loan by falsely stating that it was for erecting and running a windmill in Dharmapuram but instead used the loan amount to purchase land in Tiruppur. Mr. Raveendranath Kumar and O. Panneerselvam had misused the authority and position of the office of Minister of Government of Tamil Nadu by providing the address of one of the Directors of M/s.Vijayanth Developers Pvt. Ltd. (i.e. Mr. Raveendranath Kumar) as ‘No. 147, Thenpannai, Greenways Road, R.A.Puram, Chennai – 600 028’ which is the address allotted to Mr. O.Panneerselvam in his capacity as Minister to the Government of Tamil Nadu. Whether M/s Vijayanth Developers Pvt. Ltd., having undertaken no previous construction work or activity, has the requisite expertise to carry out a development project involving construction of 117 plots covering an extent of 36,500 sq.m It is not known on what basis was the DTCP approval given to M/s Vijayanth Developers Pvt. Ltd. on 05.12.2019 when they had no prior experience in construction or development business? On what basis was TNRERA project registration approval given to M/s Vijayanth Developers Pvt. Ltd., a company with no prior experience in real estate/ construction / development business? Hence, There is a clear case of quid pro quo involving Mr. O.Panneerselvam using the Range Rover car belonging to Ms/ Vijayanth Developers Pvt. Ltd., which company having no prior experience in construction or development business was provided with DTCP approval by a department which is one of the portfolios held by Mr. O. Panneerselvam.

38 c) Loss to Government

G.O.(Ms) No. 178 (HCS1)

On the basis of letters from the Registrar of Co-operative Societies (Housing) dated 26.02.2019, 01.03.2019 an 31.10.2019, G.O.(Ms) No. 178(HCS1) dated 12.11.2019 was issued providing Government Guarantee of INR 462.69 crore for implementation of a house site scheme in an area comprised in survey numbers 148/4B & others at Varadarajapuram&Erumaiyur Villages, Sriperumbudur Taluk, Kancheepuram. The scheme details are as provided by the Registrar of Co-operative Societies, is as follows:

Extent of Land to be purchased: 120 acres Cost of one acre (developed): INR 701.04 lakhs Total Cost: INR 841.25 lakhs.

C. BRIBE PAID BY U.S. COMPANY TO EB AND PLANNING PERMISSION ETC.,

Mr.Tha.Mo.Anbarasan , our party MLA has lodged a complaint on 18/02/2019 with the Joint Director of CBI, Chennai and the gist of the Complaint is as follows:-

In the order dt. 15.02.2019 taken in cease-and-desist proceedings by the Securities and Exchange Commission of United States of America, as published in a Release No.85149, initiated against Cognizant Technology Solutions Corporation, in paragraph No.16, it has been recorded as follows: “Bribe Payment in Siruseri, Tamil Nadu 16 . In Siruseri, Cognizant India authorized Contracting Firm-1 to pay bribes totaling $840,000 to government officials for the issuance of several construction-related permits, including a planning permit, a power permit from the local electricity board, and an environmental clearance. Contracting Firm-1 made the payments in or around 2012, and Cognizant subsequently received the permits in the second half of that year. The contractor submitted change order requests for several inflated or unjustified work items. Cognizant India rejected the initial requests, but later approved the change orders after the sham descriptions were revised. Cognizant India reimbursed Contracting Firm-1 for the bribe payments in installments between 2015 and 2016.”

3. A reading of the above paragraph in the order revealed that there was a demand of bribe by the Government Officials from Cognizant Company, for issuance of Construction-related permits i.e. Planning Permits, clearances for providing Electricity Service

Connections to the Constructions made by Cognizant India Ltd. and also Environmental clearances. The demanded bribe has been paid by the Contracting Firm – 1 which has been later reimbursed by Cognizant India. The total bribe paid on behalf of Cognizant company was equivalent to $840,000 Million US Dollars, which is a huge amount in Indian Rupees.

4. Without the knowledge of the Ministers of the concerned Department, the demand of bribe would not have been made by the officials, as the projects that were carried out by a Foreign Based company through its Indian subsidiary company. There must be an understanding among the Company, Government Officials and the Government in the process of clearing the projects by granting Planning Permits, Electricity Connection and Environmental Clearances. In fact, the demanded and paid bribe amount has been reimbursed by Cognizant company, as recorded in the above said order.

For discharging the duties, the Government Officials have reportedly received bribe from the US based company, which is serious and the officials who involved in the said illegal demand of bribe shall be dealt with in accordance with Law i.e under the provisions of Prevention of Corruption Act and other penal Laws covering international offences as the transaction of amount has been reportedly transacted from United States for ultimate reimbursement of bribe paid to the officials of Tamil Nadu Government Officials.

HON’BLE MINISTER FOR MUNICIPAL ADMINISTRATION THIRU. S. P. VELUMANI

A. LARGE SCALE CORRUPTION IN ALLOTTING CONTRACTS TO HIS BENAMIES a) A complaint was given by Thiru. R.S.Bharathi on 10.09.2018 against the Minister to the Director, Directorate of Vigilance and Anti- Corruption. b) No action was taken on the complaint and after Thiru. Bharathi approached the Hon’ble High Court in Crl. OP. No. 23428 of 2018, the Directorate of Vigilance and Anti-Corruption, at the instance of the Minister, conducted an investigation without registration of First Information Report and closed the complaint during the pendency of the petition. c) The gist of the allegations in the complaint is as follows: i. Thiru. S.P. Velumani is the cabinet minister for Municipal Administration, Rural Development, Corporations, Panchayats and Panchayat Unions, Poverty Alleviation Programmes, Rural Indebtedness, Urban and Rural Water Supply (TWAD) and Implementation of Special Programme since 2014. Through the documentary materials it has been established all the contracts of the Local administration Department were awarded only to the following companies which are owned by his close associates. All the tender documents by all these companies were uploaded from the same IP address.

42 ii. COMPANIES FLOATED BY THIRU. S.P. VELUMANI’S RELATIVES, FRIENDS AND BENAMIS 1. KCP engineers Pvt. Ltd. 2. P. Senthil and Co. 3. Varadhan Infrastructure 4. Constronics India 5. Alayam Foundation Pvt. Ltd. 6. Contromall Goods Pvt. Ltd. 7. Invicta Meditek Ltd.

RELATIONSHIP

• Mr. S.P. Velumani and Mr. Chandrasekar’s father Mr. Rajan are close friends for past 20 years.

• Mr. S.P.Velumani who was a contractor knew Mr. Rajan who was a licensed explosive dealer for quarries.

• Mr. Chandrasekar is a Civil engineer. He was holding the post of the Subarban Students wing leader in AIADMK. Now he is managing the official mouth piece of AIADMK party “ Namadhu Amma”.

• Mr. Chandrasekar and Mr. Chandraprakash (civil engineer) are close friends for several years. Both being civil engineers were working as Technical Assistants for a Junior Engineer in Coimbatore Corporation West Zone since 1998.

• Mr. Chandraprakash’s father is Mr. Krishnakumar who was running a company in the name and style of M/s KCP

Engineers and Fabricators which was later given to Mr. Chandraprakash and he has been running it in the name of KCP Engineers.

• Mr. Chandrasekars younger brother Mr. Anbarasan and various family members have floated companies namely Vardhan Infrastructure, Constronics India, AalayamFoundationPvt. Ltd., Constromall Goods Pvt. Ltd., InvictaMeditek Ltd. which under took various contracts in Coimbatore and Chennai corporation.

KCP ENGINEERS

• This company was started by Mr. Krishnakumar who was running this company in the name of KCP Engineers and Fabricators. This company was later handed over to Mr.Chandra prakash and he has been running this company in the name of KCP Engineers Pvt Ltd.

• Mr. Chandraprakash and R. Chandrasekar Purchased 1,08,376 shares of KCP Engineers Pvt Ltd. At more than 300 times of their face value at Rs. 3,77,14,848/-

• KCP engineers have managed to increase their turnover to an unimaginable number within 2011 to 2017. The turnover of KCP during the year 2011 was Rs. 17 Lakhs which has grown upto Rs. 142 crores.

• This company has alone obtained contracts worth Rs.498 Crores

SENTHIL AND CO

• This company belongs to Thiru S.P. Velumani’s own brothers Thiru. S.P. Anbarasan and Thiru. S.P.Senthil

• This company has undertaken prijects worth Rs. 15 Crores from the Coimbatore Corporation alone from the year 2011- 2015

• The payments of this company in the year 2011 where Rs. 17,88,569 but in the year 2015 there payments had gone upto Rs. 8,74,45,787

VARDHAN INFRASTRUCTURE • This company is owned by Tmt. Sundari Krishnakumar Mother of Thiru. K. Chandra Prakash and ChinnasamyPremkumar.

• Vardhan Infrastructure had a total contract turnover of Rs. 3,02,61,997 in financial year 2012 to 2013. This increased by 5 times in the year 2014 to 2015 to Rs. 15,17,28,018. This has even more increased 20 times in 2016-2017 with a turnover of Rs. 147,34,46,007.

CONSTRONICS INDIA • This is a partnership firm owned by relatives of Thiru. K.Chandraprakash, Managing director of KCP Engineers Pvt. Ltd.

• It is presently operating from the same address as Varadhan Infrastructure and Constromall Goods Pvt. Ltd.

• The turnover of this company has increased from Rs.86,00,000/- to Rs. 28,55,61,334 within a span of just three years.

AALAYAM FOUNDATION PVT LTD

• This company is a subsidiary of KCP Engineers Pvt. Ltd and managed by Thiru. K. Chandra Prakash. ThiruRajanChnadrasekar resigned from the company in 2017 but retains major shareholding

CONSTROMALL GOODS PVT LTD

• This is a recently floated company (04.06.2018) by Thiru. Chandra Prakash, Thiru. Rajan Chandrasekar and V. Jayaprakash partner in Constronics India (appointed as additional director on 31.07.2018)

INVICTA MEDITEK LTD

• This is a public listed company formerly based in Spencer Plaza and now based out of the same address as Constronic India and has also applied to change its name as Constronics India Ltd. It has appointed, in violation of Section 149 (6) of Companies act.

• Thiru. K. Chandra Prakash his wife Tmt. C. Uma Maheshwari his business associate Thiru. J.Vishnuvadhanan and Thiru.Palani swamy Sathiyamoorthy.

• In the meeting held on 18.06.2018 the board of directors made the above changes and also changed the Memorandum of Association to include “ all kinds of construction related activities and supply of manpower”.

AALAM GOLD AND DIAMONDS PVT. LTD.

• The founding directors of this company is Thiru. Rajan Chandrasekar and K. Chandra Prakash. This company was incorporated in May 2018.

• The above directors are resigned merely after 10 days after the incorporation.

• Tmt. Uma Maheshwari Thiru K. Chandra Prakash’s wife and SathyamoorthySaravanakumar are the present Mananging Director and Director of Company respectively.

RATNAA LAKSHMI HOTELS PVT. LTD.

• This company managed by Thiru K. Chandra Prakash and Palani Rangarajan

• Thiru. K. Chandra Prakash had resigned and H. Karthik who is the Constronics India has been appointed instead.

B. CORRUPTION IN LED LAMP FIXATION

A complaint was given by Thiru. M. Appavu on 20.07.2020 against the Minister to the Director, Directorate of Vigilance and Anti- Corruption. There has been no action on the complaint by the Directorate of Vigilance and Anti-Corruption till date in violation of the decision of the Constitution Bench of the Hon’ble Supreme Court in Lalita Kumari vs State of UP.

The gist of the allegations in the complaint is as follows:

1. According to the announcements of the Hon’ble chief Minister in assembly in 3 financial years, the Rural Development and Panchayat Raj Department issued the following Government Orders for replacing old lights to LED lights in phased manner at Village Panchayat level for total cost of Rs. 875 cr. The details of orders are as follows:

Sl. Order Nos. and year Sanctioned No. of Lights Sum be replaced No . 1. G.O.Ms. No. 19, Dated 02.02.2016 for Rs. 300 cr 8,00,000 2015-2016 2. G.O. Ms. No. 11, Dated 25.01.2017 for Rs. 300 cr (8,22,000) 2016-2017 3. G.O. Ms. No. 47, Dated And altered as 26.03.2018 for 2015-2016 Rs. 69.32 cr 8,24,000 lights (additional expenditure to instead 8,22,000 G.O. 11, dated 25.02.2017)

4. G.O. Ms. No. 23, Balance number Dated 13.02.2018 for Rs.206.38cr of lights 2017-2018

2. When the cost of replacing streetlights comes to Rs. 300 cr per financial year, there is a duty to issue global e-tender since the work order sum is exceeding Rs. 10 Cr. as per the Tamil Nadu Transparency in Tender Act 1998. Knowing fully well that such tenders within legal parameters may not be helpful to his plan of wrongfully gaining several crores of public exchequer money, the Hon’ble Minister Mr. S.P.Velumani constituted a State Level Committee to fix cost of LED lights for each financial year to fix the cost of lights and divided the work order in to 38 districts and floated local e-tenders by District Collector as the work order is reduced to below Rs.10 crores. By which he surreptitiously achieved avoiding technically from floating global e-tender. Accordingly, the State Level Committee (in short SLC) comprised officials as:

a) The Director of Rural Development and Panchayat Raj - Chairman

b) The Chairman/MD of TEDA or his nominee of CMD, TEDA

c) Principal Secretary, Finance Department or his nominee

d) The Supt. Engineer of Rural Development from o/o DRD&PR

f) One Supt. Engineer nominated by the Chairman, TANGEDCO

3. The SLC without being aware of the ground reality or the cost of each of the LED lights in retail markets or wholesale markets, fixed abnormal and sky high price to each category of LED lights in

all three 2015-16, 2016-17 and 2017-18 financial years without applying its mind except executing the Minister’s instructions of fixing such high and abnormal cost to LED lights by causing huge loss to public exchequer. As per the Hon’ble Minister’s instructions, the details of cost fixed by the SLC and comparison the cost of LED lights in retail market for the 3 financial years and break up is hereunder :

Sl.No. Financial Cost of Cost of 90- Cost of Cost of Year 20-Watt Watt LED 20WattL 90Watt LED lights EDlights LED lights in open lights in Market open Market 1 2015- Rs. --- Rs. --- 2016 3,737 450/- /- 2 2016- Rs. --- Rs. --- 2017 4,120 450/- /- 3 2017- - Rs.14,919/- --- Rs.1550/- 2018 --

4. Further, the SLC also framed the terms and conditions of tenders for the Minister’s men conveniently to get contract for replacing lights at Districts level. As per the terms and conditions of the tender framed by the SLC, the District Collectors floated tenders at District Level to purchase LED lights to Village Panchayats. Since the script of corruption is well drafted and approved by the Hon’ble Minister Mr. S.P. Velumani in his department level at the Secretariat,

50 the District Collectors followed the script of corruption to implement the same by which the Hon’ble Minister pocketed huge exchequer money through his benami vendors/suppliers/contractors at District level, who are neither manufacturers of LED lights nor dealers of branded LED lights companies. Mr. S. P.Velumani constituted the SLC to take away the financial empowerment granted under Panchyat Raj Act to the Village Panchayat Presidents is just to swindle the public exchequer money in single window system. The usurping of financial empowerment of the Village Panchayat Presidents grave danger to the Panchayat Raj system. 5. The vendors/suppliers of 20- and 90-Watt LED suppliers to various districts are either fake or haveno experience in electrical business or don’t have permanent entities and those are nothing but benami entities of Hon’ble Minister S. P. Velumani. The sample list of LED lights benamisuppliers to the districts are hereunder: Sl.No. Name of Suppliers Contract orders Ref. No.

1 KCP Engineers Pvt Ltd Lr. No.A4/1415/2019, Pullayakulam, dt. 10.06.2019, issued by Coimbatore Dy.BDO, Anthanallur Panchayat Union Thirchirapalli District 2 C.R. Construction Lr. No. 582/2019/R8, dated 40/7, 40/8, Veeramathi 24.05.2019, issued by the Asst. Amman Koil Street, PN Director of Panchayat, Pudur, Coimbatore Dharmapuri District

General Enviro Tech Pvt Ltd Lr. No. 582/2019/R8, dated 3 70-A, Kalluri Nagar, Anna 24.05.2019, issued by the Asst. Nagar Peelamedu, Director of Panchayat, Coimbatore Dharmapuri District 4 R. Krishnamurthy & Co Lr. No. 582/2019/R8, dated Engineering Contractor, 24.05.2019, issued by the Asst. Sapthamaliga Apartment, Director of Panchayat, Kilpauk, Chennai 600010 Dharmapuri District 5 The Acetech Machinery Lr. No. A1/1284/2019 (1), dated Components India Pvt Ltd 02.05.2019, issued by the Asst.

71, 4 th Cross, Thirumurugan Director of Panchayat, Nagar, Vadavalli, Kanyakumari District Coimbatore 6 Rajarajeswara Construction Lr. No. 555/2017/C1, dated 7/C, Directors Colony, 27.04.2018, issued by the Kodambakkam, Chennai 24 District Collector, Nagapattinam District 7 B.R. Ganesh Kumar Lr. No. 815/2018/A5, dated 16/27, Chellappa Street 23.10.2018, issued by the Chennai 600 012 District Collector, Salem

8 Orient Poles Lr. No. 582/2019/R8, dated Flat No. 17&18, Sanskrit 24.05.2019, issued by the Apts Assistant Director of DRDA, 1st Floor B1, Velachery by- Dharmapuri District pass Road, Velachery, Chennai 42 9 Sabharai Electricals Lr. No. A4/1415/2019, dated Ambattur, Chennai 10.06.2019, issued by the Dy. . BDO, Anthanallur Panchayat Union, Thiruchirapalli District 1 Sri Ganasha Traders Lr. No. A4/1415/2019, dated Thiruchy 10.06.2019, issued by the Dy. 0 BDO, Anthanallur Panchayat Union, Thiruchirapalli District 1 Thirumurugan Electricals Lr. No. 617/2019/T3, dated Chennai 20.05.2019, issued by the Dy. 1 BDO, Konganapuram Panchayat Union, Salem District

6. The so-called supplier in item No. 1 is none else but AIADMK party Coimbatore District Rural Wing Secretary Mr. Rajan Chandrasekar. His company has no previous experience of supplying electrical goods but he is close associate of Mr. S.P.Velumani. Hence he was awarded contract of supplying LED lights. The so called suppliers are neither manufacturers of LED lights nor dealers/agency of manufacturing companies of LED lights. These so called suppliers purchased these LED lights from open wholesale market and supplied the same as the price fixed by the State Level Committee.

7. The above-mentioned suppliers from Item No.2 to 11 are not at all in anyway connected with supplying electrical goods nor bulbs nor LED lights. For example the address of suppliers in Item No. 9, 10 and 11 would very clearly express whether they are real entities of doing business. No GST numbers provided by all the aforementioned suppliers. The so-called suppliers from Item No. 4 to 11, do not have any business entity except lending their names to obtain contracts illegally to supply LED lights at the rate of sky high price to assist the Minister Mr. S.P.Velumani to swindle the public money the assistance of his Administrative Officers. If he had floated global tender,the LED lights manufacturers companies such as viz. Osram, Philips, Surya, Voltas, Crompton Greaves, Wipro, NTL Electronics, etc would have participated and it would be finalized, the cost of purchasing LED lights would have been10 times lower to replace all old lights to LED lights with technical experts assistance to save public money. 8. The Hon’ble Minister Mr. S.P.Velumani hatched the idea of fixing sky high cost of LED lights under his Administrative Officers/State Level Committee and drafted the terms of tenders to enable his benamis to participate and they were awarded contracts to replace old street lights at Village Panchayats at District/Union Panchayat level for the fixed sky high price by SLC. When the 20 Watt LED light cost at Rs.450/- with fittings, the State Level Committee fixed the cost Rs. 3,737/- for 2015-16 FY and Rs.4,120/- for 2016-17 FY.The 90 watt LED lights available at cost of Rs. 1550/- with fittings, the State Level Committee fixed cost of the 90Watt LED light at Rs. 14,919/- during 2017-81 FY. His department utilized the Rs.811 cr. of State Funds and Rs.69 cr. from District Panchayat Funds, totally Rs.875 cr. fund was taken out to replace the old lights

53 to LED lights at Village Panchayat level. Under this mechanism of fixing cost of LED lights and framing terms and conditions of tender at District level by State Level Committee and awarding contracts to his benamis, he caused great loss to the exchequer to the tune of about Rs. 500 cr money and he and the officials of SLC pocketed the exchequer money about sum of Rs. 500 cr. in the said 3 financial years and caused loss to the Government.

HON’BLE MINISTER FOR ELECTRICITY THIRU. P. THANGAMANI

A complaint was given by Thiru.R.S. Bharathi on 01.10.2018 against the Minister to the Director, Directorate of Vigilance and Anti- Corruption.

There has been no action on the complaint by the Directorate of Vigilance and Anti-Corruption till date in violation of the decision of the Constitution Bench of the Hon’ble Supreme Court in Lalita Kumari v State of UP.

The gist of the allegations in the complaint is as follows:

A. IMPORT OF COAL

• Although TANGEDCO had started floating global tenders for import of coal, it has not evolved any specific policy for importing coal. In the absence of a comprehensive policy, there was no direction for key decisions for import, which led to excessive Bid Qualification Requirement (BQR), non-adoption of e-tendering and variable pricing method for payment of imported coal which was taken advantage by Thiru. P. Thangamani who is holding the post of Electricity, Prohibition and Excise Minister, by misappropriating funds in purchasing coal during non-crushing period at higher rates.

• Since the time allowed for purchase of tender documents and submission by the prospective bidders from the date of publishing of

55 the tender was gradually reduced from 30 to 10 days without any reasons on record, the number of bids received remained at three/four throughout, thereby limiting competition. Minimum time specified by the competent authority was 15 days as per Rule 20(2) of the Tamil Nadu Transparency in Tenders Rules, 2000 (Tender Rules). It is revealed that 30 days of time was not available between commencements and closing date of sale of tender document, hence the provision of tender rules was not followed.

• Thus, using this opportunity as a Minister of Electricity, Prohibition and Excise Thiru. P. Thangamani exceeded his authority and gave contracts to the companies through which he obtained wrongful gain and caused wrongful loss to the Government.

B. BIDQUALIFICATION REQUIREMENT (BQR) & INAPPROPRIATE PRICE MANAGMENT

• The criteria fixed (July 2012) in the BQR for import of coal stipulated that the bidder should have supplied one MMT (Million Metric Tons) of imported coal during any one of the preceding four financial years and have an annual average turnover of 1,000 crore during the preceding three financial years. It is noticed that the turnover criteria of 1,000 crore was more than the purchase order value ranging from 68 crore to 330 crores for Tuticorin Port and 170 crore to1, 295 crore for Ennore Port. It is noted that the criteria fixed (July 2010) by TANGEDCO for all tenders was 25 percent of the estimated value of the tender. Moreover, TNPL and NTECL fixed turnover criteria of NIL and 281 crores(26 per cent) against their value of import of 167 crore and1,092 crore, respectively. This was done only with a view to eliminate otherwise eligible contractors and to benefit few pre-selected contractors.

• The import of coal is finalized the competitive prices based on

(i) E-submission method (ii) Reverse Auction method (iii) Variable price method

C. CONTRACT MANAGEMENT FOR IMPORT OF COAL

A. The Government of India policy stipulated that import contracts by all Government departments/PSUs are required to be finalized on Free on Board (FOB) basis to retain control on shipments and to extend maximum cargo support to the Indian shipping industry. The policy further stipulated that No Objection Certificate (NOC) should be obtained from the Ministry of Shipping, Government of India for deviation from FOB basis on each and every case. TANGEDCO finalized all coal import contracts on Cost, Insurance, Freight (CIF) basis but it did not obtain NOC from the Ministry of Shipping, Government of India as required.

B. As per tender conditions, production of Certificate of Country of Origin (COO) by the suppliers for all consignments was mandatory for getting concessional customs duty and ensuring the genuineness of the import. The tender condition also stipulated that payments shall be made by TANGEDCO only upon furnishing of COO by the suppliers. The Report of the Comptroller and Auditor General of India on Revenue Sector for the year ended 31 March 2017 revealed that 176 out of total 297 consignments were originated from Indonesia as per Bill of Lading. But the COO was not produced by the suppliers in respect of all the 176 consignments. Therefore, the genuineness of the source of import was not established in respect of 176 consignments till October 2017. However, the payment of Rs. 5,767.31 crores was made to the supplier without obtaining mandatory COO. The COO from Government of the exporting

58 country was not obtained in all the 176 consignments which were mandatory as per the TANGEDCO’s tender conditions.

D. IMPORT OF LOW-GRADE COAL

A. As per the tender conditions, the Gross Calorific Value (GCV) of the imported coal was required to be at 6,000 Kcal/Kg with an acceptable range between 5,800 and 6,700 Kcal/Kg. While there is no premium for GCV exceeding 6,000 Kcal/Kg, for GCV lower than 6,000 Kcal/Kg, the price was to be adjusted as per the formula specified in the tender.

B. To ensure GCV of the coal supplied as per tender conditions, supplier was required to engage independent testing agency with the approval of TANGEDCO. The quality of coal is decided based on the reports of these testing agencies. The verification of quality testing in other PSUs (Public Sector Undertaking) revealed that:

TNPL selected the testing agency for each consignment of coal from its empanelled testing agencies through a lot system and coal samples were collected from the automatic coal sampler installed in the conveyor at the TNPL plant.

TNECL (Tamil Nadu Energy Company Limited) also selected the testing agency from its empaneled testing agencies.

The quality of coal would be finally decided by both TNPL and TNECL based on the test conducted at their own laboratories in their plants.

C. The independent verification of the coal quality test reports from the laboratory of the Customs Department in respect of 121 consignments of TANGEDCO revealed that GCV was lesser than that of the discharge port laboratory test reports submitted by the suppliers. TANGEDCO had accepted lower grade of coal as revealed in the customs test reports but it made payment for coal having GCV as per the test results submitted by the suppliers’ testing laboratory and made excess payment of Rs 813.68 crore. D. Thus Thiru. P. Thangamani being a Minister of Electricity, Prohibition and Excise a busing his position as a public servant has engaged in corruption by colluding with TANGEDCO officials by importing lower grade of coal with intent to misappropriate funds to the tune of Rs.813.68 crore.

E. EID PARRY CONTRACT

A. TANGEDCO’s termination of PPA (Power Purchase

Agreement) in respect of EID Parry (East India Distilleries) was illegal as it was aware that the power generated by EID Parry was made available for sale under STOA (Short Term Open Access) routes at the prices ranging from Rs 5.05 to Rs 5.50 per unit, which was more than the prevailing rates fixed by TNERC for crushing season ranging from Rs 3.52 to Rs 3.99 per unit.

B. The price for purchase of power from EID Parry as per the tariff fixed during 2015 – 2016 and 2016 – 2017, 2017 – 2018 are as follows:

SI. YEAR RATE OF POWER RATE OF PRIC NO TARIFFDURINGCRUSHING POWER E PER . SEASON(DECEMBER TARIFF UNIT TOJUNE) DURING NON - CRUSHING SEASON (JULY TO NOVEMBER) 1. 2015 – 2016 3.52 5.15 3.52

2. 2016 – 2017 3.99 5.40 3.99

3. 2017 - 2018 4.12 - 4.12

C. The purchase of 66.06 MU of power produced by EID Parry during crushing season at the rates higher than the prevailing rates, which worked out to Rs 10.90 crore. After the termination of the PPA with EID parry, TANGEDCO purchased power during the period from November 2015 to May 2016 on need basis through STOA route. The purchase of power through STOA route was made at the price more than the price fixed by TNERC for crushing season and TANGEDCO intended to purchase surplus power through STOA route only during Non-crushing season, but it purchased power at higher rates both during crushing and Non-crushing seasons.

D. Thus, Thiru. P.Thangamani violated the rules of TNERC (Tamil Nadu Electricity Regulatory Commission) by purchasing 66.06 MU (Million Unit) of power from EID parry at the rates higher than the notified rates and incurred wrongful loss of Rs 10.90 Crores to TANGEDCO.

I submit that all the above findings are reflected in Report of the Comptroller and Auditor General of India on Revenue Sector for the year ended 31 March 2017.

F. CORRUPTION IN PURCHASE OF SPARE PARTS - M/s. BHEL (BHARATH HEAVY ELECTRICALS LIMITED)

A. A contract was placed on M/s.BHEL, Chennai by

TANGEDCO for design, engineering, manufacture, assembly,

supply, erection, testing and commissioning of complete coal fired

thermal power plant including all mechanical, electrical,

civil/structural/architectural, control and instrumentation works for the

establishment of North Chennai Thermal Power Station – II (NCTPS)

with capacity ranging from 2x500MW to 500+20%MW within the

existing NCTPS complex for a value of Rs2,475 Crore and Rs 2,175

Crore for unit I & II respectively.

B. As per the general terms and conditions of the contract, the

Contractor shall guarantee that the equipment being supplied under

this contract shall be new and of first quality work man ship and shall

have no defect in manufacture, for the purpose intended. The

guarantee shall be for a period of twenty-four months (24 months)

commencing immediately on completion of successful performance

guarantee testing of the unit & acceptance by TNEB. As per EPC

Contractual provisions, M/s BHEL has to provide mandatory spares

valuing Rs.100 crores. In this regard records are not clear for supply

of mandatory spares by M/s.BHEL to TANGEDCO.

C. The P.G test (Performance Test) were conducted as follows:

NAME DATE OF DATE OF OF THE PERFORMANCE COMPLETION OF UNIT GUARANTEE TEST GUARANTEE PERIOD

I 03.11.2014 02.11.2016

II 28.02.2017 27.02.2019

D. It is submitted that the amount spent for the purchase of materials during Warranty /Guarantee period as follows:

S.NO. PERIOD UPTO PURCHASE TO THE TUNE

1. 31.03.2015 Rs.49,34,44,951

2. 22.04.2015 to Rs.48,65,12,221 28.03.2016

3. 21.04.2016 to Rs.18,26,84,344 21.10.2016

4. COD Rs. 24,63,899

(Commercial Operation Date)

Total Rs.116,51,05,415

As per the condition in the contract (Clause 25.0 and 26.0 of LOI) the materials erected by M/s.BHEL is to sustain a guarantee period

64 of 2 years. But the Officials of NCTPS – II have purchased spares worth Rs.116.51 Crores for the period upto October 2016. As the plant’s material is to sustain a guarantee period upto 02.11.2016 (Unit - I) and 27.02.2019 (Unit - II), subsequent to the period from November 2016 there are also purchase of materials valuing several crores of rupees which is under the process of evaluation. Also, the cost of the materials procured before the date of COD (Commercial Operation Date) is to the tune of Rs.24,63,899/- by TANGEDCO. It is further submitted that no proper reason was given by the TANGEDCO for purchase of materials / replacement of materials.

Hence Thiru. P. Thangamani being Minister of Electricity, Prohibition and Excise has committed a huge scam in purchasing spares to the tune of Rs.116.51 Crores supplied by M/s.BHEL.

G. CORRUPTION IN WIND ENGERY- IBPIL

A. A contract was given to M/s. IND – BARATH POWER INFRA LIMITED (IBPIL) by TANGEDCO to generate energy to TANGEDCO. The energy export statement given by TANGEDCO is as follows:

S.NO TIME PERIOD AMOUNT . 1 November Rs.4,39,27,316 2016 2 December Rs.4,78,46,063 2016 Total Rs.9,17,73,379

Hence, bogus energy allotment made without generation is worked out to an amount of Rs.9,17,73,379

B. The units of power are claimed to be supplied are as follows:

S.NO TIME POWER UNITS GENERATED . PERIOD (BOGUS)

1. 27.06.2016 1461.666

2. 05.07.2016 1467.254

3. 27.07.2016 1467.254

4. 27.08.2016 1467.254

5. 27.09.2016 1467.254

6. 27.10.2016 1467.254

7. 27.10.2016 1467.254

8. 15.11.2016 1467.254

9. 16.11.2016 1506.965

10. 22.11.2016 1506.965

11. 22.11.2016 1467.315

12. 27.11.2016 1467.315

The above power units were meant to be supplied but in fact, power was not generated. In regard to this,3 officials have been made as scapegoats, suspended and case has been registered against them and the concerned power plant. The role of the higher officials and the minister has been shoved under the carpet.

HON’BLE MINISTER FOR FOOD AND CIVIL SUPPLIES THIRU. R. KAMARAJ

A. CORRUPTION IN PDS RICE GIVEN BY UNION GOVT

This is a repetition of the allegation against the Hon’ble Chief Minister Thiru Edapadi K.Palanisami. How ever the same is reproduced as the Minister for food Mr. R.Kamaraj is having independent role apart from the Conspiracy with the Chief Minister, at the risk of repetition. A complaint was given by Thiru. M. Appavu on 20.07.2020 against the Minister to the Director, Directorate of Vigilance and Anti-Corruption. There has been no action on the complaint by the Directorate of Vigilance and Anti-Corruption till date in violation of the decision of the Constitution Bench of the Hon’ble Supreme Court in Lalita Kumari v State of UP. The gist of the allegations in the complaint is as follows:

1. Consequent to the order of Union of India dated 30.03.2020, Co-operation, Food and Consumer Protection Department issued government order in vide G.O.(Ms). No. 52, dated 27.04.2020 agreed to lift the total additional allocation of 1,78,668.56 Mts free rice and distribute the same to AAY and PHH card holders’ each family members to 5kg per member for April to June,20. Further the Government decided to purchase and distribute additional free rice of 5kg per person to 85,99,302 NPHH-UPDS family card holders for three months i.e. 66,271 MTs (per month)@ Rs.22/- per kg from Food Corporation of India which cost asum of Rs.146 crores per month and total cost for three months rice comes to Rs. 438 cr to total quantum of rice 1,98,813 MTs.Further, it is to be noted that the authority expressed its inability to lift additional allotted free rice for AAY & PHH card holders and has not yet been lifted and distributed,

68 and also not yet purchased the 1,98,813 Mts additional rice for NPHH card holders as on 27.04.2020. 2. While it being so, on 22.05.2020, the Hon’ble Minister for Food and Civil Supplies Mr. R. Kamaraj issued a press release bearing PR No. 359 where he claims that it was his submission to the Hon’ble Minister for Consumer Affairs, Food and Public Distribution System of Union of India during video conference (no date is mentioned when the said video conference was held) that as on 22.05.2020 the additional allocation of free rice 5,01,649 MTs was lifted out of total 5,36,005 MTs free rice of 5kg per person and 96.3% of beneficiaries (AAY & PHH UPDS card holders) were distributed in the month of April and 85% of beneficiaries were distributed for the month of May as on 21.05.2020. 3. The Hon’ble Minister Mr. R.Kamaraj surreptitiously suppressed by his statement dated 22.05.2020 that the corruption of selling the additional free rice in open market which was allocated under the PMGKAY-NFSA scheme to distribute the AAY& PHH card holders of Tamil Nadu. Because on 27.04.2020 his department pleaded to the Central Government that “as due to short time period available for mobilization of this huge stock of rice from the FCI to Tamil Nadu Civil Supplies Corporation godowns and then from Tamil Nadu Civil Supplies Corporation godowns to the respective fair price shops. Additional entitlement of rice allotted for April 2020 which remains undrawn as per the revised entitlement issued under this Government Order can be drawn by the card holders in the Months of May and June 2020 along with revised entitlement.” But within about 20 days, he claimed that he lifted free rice of 5,01,649 Mts rice and distributed the same to AAY &PHH UPDS card holders of 96.3% of beneficiaries in April and 85% of beneficiaries in May. He issued

69 such statement intentionally to coverup his wrongful gain of huge money and corruption by selling the said rice in open market. The statement of the Minister for Food and Civil SuppliesMr. R. Kamaraj in his PR No. 359, dated 22.05.2020 was evidence of conspiracy to smuggle and sell theentire additional allocated free rice in open market. And in the same statement, he said that additional rice for NPHH card holders of 1,98,813 MTs was just purchased. He did not mention it was lifted and distributed to the beneficiaries of NPHH card holders as on 22.05.2020. Hence, it is evidence that the additional free rice for NPHH card holders were not distributed free rice as on 22.05.2020. 4. Further the Hon’ble Chief Minister has also common intention with ulterior motive of supporting the Hon’ble Minister R.Kamaraj to sell free rice and purchased rice in open market to get wrongful gain. Hence, to support Mr. R.Kamaraj, on 19.06.2020 the Hon’ble Chief Minister issued his press release bearing PR No. 438 where he mentioned particularly thatall NPHH card holders (85,99,302 card holders) were distributed free rice of 5kg per person for the 3 months. He cleverly omitted to mention that the additional free rice of 5kg per person per month for the three months was distributed to all AAY & PHH UPDS family card holders. When the additional rice of 1,98,813 MTs was not purchased as on 27.04.2020 and as per statement of Minister R. Kamaraj dated 22.05.2020 he said the additional rice was just purchased as on 22.05.2020, but it was not lifted from FCI godowns and not distributed to the NPHH beneficiaries as on 22.05.2020. Therefore, the Hon’ble Chief Minister and Hon’ble Minister for Food and Civil Supplies Mr. R. Kamaraj had jointly and severally sold the free rice and purchased rice for the beneficiaries in open market by which they gained wealth illegally.

HON’BLE MINISTER FOR HEALTH THIRU. DR. C. VIJAYA BHASKAR

A complaint was given by Thiru. R.S.Bharathi on 03.09.2018 against the Minister to the Director, Directorate of Vigilance and Anti-Corruption. There has been no action on the complaint by the Directorate of Vigilance and Anti-Corruption till date in violation of the decision of the Constitution Bench of the Hon’ble Supreme Court in Lalita Kumari v State of UP.

The gist of the allegations in the complaint is as follows:

1. In the residence of Thiru. C. Vijayabasakar at 14/28, Sowrashtra Street, Illupur, Pudukottai, cash amounting to Rs.20,00,000/- was seized including Rs.12,96,000/- in brown covers with the names of the respective candidates written on each of the covers with regard to the job in Nutrition Meal Programme. Interview call letters of the respective candidates were also seized containing 28 pages. It has been reported that a statement under section 132 (4) of the Income Tax Act 1961 from Chinnathambi, father of Thiru C. Vijayabasakar. It has been further reported that Chinnathambi in his sworn statement admitted that the cash of Rs. 12, 96, 000/- was the money received from various persons to get job for each of them. This clearly attracts the provisions of section 7 and 13(1) (d) of the Prevention Corruption Act 1988. 2. The cash collection receipts details for the period from 23.07.2016 to 09.11.2016 are follows:

23.07.2016 to 18.082016 Rs.3,91,28,000

Rs. 1,99,25,000 19/08/2016 to 01/09/2016

Rs.84,50,000 02/09/2016 to 12/09/2016

Rs.6,81,82,000 14/09/2016 to 12/10/2016

Rs.2,04,90,000 13/10/2016 to 27/10/2016

Rs. 5,14,16,500 01/11/2016 to 09/11/2016

Rs. 20,75,91,500 TOTAL

Thiru.C. Vijaya Bhaskar, at Thiruvengaivasal village at Iluppur Taluk leased out to one Subbiah a mining plan to quarry rough stone which was permitted by the Department of Geology & Mining, Pudukkottai. The approved volume of quarrying is 2,95,642 cubic meters. Whereas the scientific survey of the Income Tax (Investigation) Department found that 25,51,868 cubic meters of rough stone and Mixture of gravel and earth was excavated so far.

HON’BLE MINISTER FOR REVENUE THIRU. R. B.UDHAYAKUMAR

A complaint was given by Thiru. Bharathi on 11.05.2020 against the Minister to the Director, Directorate of Vigilance and Anti-Corruption. The Directorate of Vigilance and Anti-Corruption, only after Thiru. Bharathi filed petition before the Hon’ble High Court in WP. No. 8089 of 2020 informed that a closure report was filed, in haste after an alleged investigation without registration of FIR.

The gist of the allegations in the complaint is as follows:

1. AMENDMENT/ CORRIGENDUM FAVOURS TWO BIG CORPORATE SUPREMOS

a) TANFINET has modified the conditions for eligibility to bid for the project in favour of a few specific companies.It is reliably learnt that these changes are made to favour 2 specific companies namely Sterlite Technologies Limited (STL) and Huawei group of companies.

b) The Bharat Net project was awarded to Sterlite Technologies Limited (STL) to create a high-speed rural broadband network by Telengana Fiber Grid Corporation Limited (T-Fiber) and hence the two companies in paragraph a) are taking utmost efforts to get the project through undue influence.

CIVIL SERVANTS BEING USED AS WHIPS OF RULING GOVERNMENT

c) Mr.Sathosh Babu IAS and Mr.MS. Shanmugam IAS who were serving as Managing Director of TANFINET were pressurized to award the contracts as per the wishes of the Tamil Nadu Information Technology Minister R.B. Udhayakumar and the Chief Minister of Tamil Nadu. Since both these officers were not agreeing to their dictates. It is believed that they were transferred and replaced by Mr.Hans Raj Verma IAS and Mr. Ravichandran IAS. The last date for the pre-bid conference, opening of the tender etc have been postponed continuously without any valid reason.

TURNOVER AND EXPERIENCE CONDITIONS MODIFIED

d) The corrigendum, published on 15.04.2020 shows a substantial increase in the turnover of the bidding companies. The initial notification for the cable laying works to connect 12,524 villages with internet connection was Rs 1,950 crore. The following are the four tender’s original and modified tender norms for laying optical fiber cables in the state:

PACKAGE A TENDER REFERENCE NIT/TANFINET/001/PACKAGE-A

ORIGINAL TENDER NORMS MODIFIED TENDER NORMS

TURNOVER

Theinitial notification required the sole The corrigendum notified that the sole bidder or lead bidder to have a bidder or the lead bidder has to have an cumulative annual turnover of Rs 405 average annual turnover of INR 405 crores for the last three financial crores for the last three financial years (2016-17, 2017-18, 2018- 19). years (2016-17, 2017-18, 2018- 19).

In case of consortium, the turnover of In case of a consortium, of each of the junior partner will not be considered for consortium members should have an this purpose. average annual turnover of Rs. 100 Cr (other than the Lead Bidder) for the last three years (FY 2016-17, FY 2017-18, FY 2018-19).

OEM (Original Equipment Manufacturers) should have an average annual turnover more than Rs. 405 Cr for the last 3 financial years (FY 2016-17, FY 2017- 18, FY 2018-19.

OEM (Parent Company) and its Indian subsidiary should also have a positive net worth and net profit in the last 3 financial years (FY 2016-17, 2017-18, 2018-19)

Sole Bidder / Lead Bidder should have a working capital facility of Rs.40 Cr with their bankers as on date of participation.

Sole Bidder / Lead Bidder should have minimum positive net worth of Rs. 54 Cr per annum in each of the last 3 financial years (FY 2016-17, FY 2017-18, FY 2018-19)

Consortium members should also have a positive net worth of Rs. 10 Cr per annum in the last 3 financial years (FY 2016-17, FY 2017-18, FY 2018-19)

e) The original tender norms, issued for Package – A during December 2019, required the bidder to have a minimum cumulative annual turnover of Rs.405 croresfor the last 3 financial years and to evade the other OEM (Original Equipment Manufacturers) and OFC (Optical Fiber Cable) Manufactures from participating the bidding, the tender norms had been modified on 15.04.2020 and requires the bidder to have an average turnover of Rs.405 crores for the last 3 financial years and few other conditions for the consortium members as mentioned in the above table which makes it impossible for the other manufacturing companies who participated in the pre – bidding meeting. This is a major anti-competitive clause as the required turnover has been increased by about 300 percent.

PACKAGE B TENDER REFERENCE - NIT/TANFINET/001/ PACKAGE-B

ORIGINAL TENDER NORMS MODIFIED TENDER NORMS

TURNOVER

The corrigendum notified that the Sole Bidder or Lead Bidder should sole bidder or the lead bidder has to have an average annual turnover of have a cumulative annual turnover Rs. 615 Crores for the last 3 financial of INR 615 crores for the last three years (FY 2016-17, FY 2017-18, FY financial years (2016-17, 2017-18, 2018-19) 2018- 19).

In case of consortium, the turnover In case of a consortium, of each of of junior partner will not be the consortium members should have considered for this purpose. an average annual turnover of Rs. 150 Cr (other than the Lead Bidder) for the last three years (FY 2016-17, FY 2017-18, FY 2018-19).

Sole Bidder/ lead bidder should have positive net worth of Rs. 80 Cr in each of the last 3 financial years (FY 2016-17, FY 2017-18, FY 2018-19)

Consortium members should also have a positive net worth of Rs. 20 Cr in each of the last 3 financial years (FY 2016-17, FY 2017-18, FY 2018-19)

Sole Bidder/lead bidder should have a working capital facility limit of Rs. 60 Cr with their bankers as on date of participation.

The OFC manufacturer should have minimum annual average turnover of Rs.200 Crores from the sale of Optical Fibre and telecom Cables in the last three financial years

EXPERIENCE

Sole Bidder or consortium should have Sole Bidder or consortium should have executed works to the minimum value of executed works to the minimum value of Rs 204 Cr in Optical Fibre Cable laying Rs 204 Cr in Optical Fibre Cable laying for Telecom infrastructure in the last 3 for Telecom infrastructure in each of the financial years (FY 2016-117, FY 2017- last 3 financial years (FY 2016-117, FY 2018, FY 2018-19) 2017-2018, FY 2018-19)

f) The original tender norms, issued for Package – B during December 2019, required the bidder to have a minimum cumulative annual turnover of Rs.615 crores for the last 3 financial years and to evade the other OEM (Original Equipment Manufacturers) and OFC (Optical Fiber Cable) Manufactures from participating the bidding, the tender norms had been modified on 15.04.2020 and requires the bidder to have an average turnover of Rs.615 crores for the last 3 financial years and few other conditions for the consortium members as mentioned in the above table which makes it impossible for the

77 other manufacturing companies who participated in the pre – bidding meeting. This is a major anti-competitive clause as the required turnover has been increased by about 400 percent. g) As per the original tender norms, issued for Package – B during December 2019, required the consortium members should have executed work to the minimum value of Rs.204 Crore in Optical Fiber cable laying for Telecom infrastructure in the last 3 financial years whereas after the amendment the consortium members or sole bidder requires to have executed works to the minimum value of Rs.204 Crore in Optical Fibre Cable laying for Telecom infrastructure in each of the last 3 financial years.

PACKAGE C. TENDER REFERENCE - NIT/TANFINET/001/ PACKAGE-C

ORIGINAL TENDER NORMS MODIFIED TENDER NORMS

TURNOVER

Sole Bidder or Lead Bidder should Sole Bidder or Lead Bidder should have a minimum cumulative annual have an average annual turnover of turnover of Rs 620 Crores for the Rs. 602 Cr for the last 3 financial last 3 financial year (FY 2016-117, years (FY 2016-17, FY 2017-18, FY FY 2017-2018, FY 2018-19) 2018-19

Sole Bidder/ lead bidder should have positive net worth of Rs. 80 Cr each of the last 3 financial years (FY 2016- 17, FY 2017-18, FY 2018-19)

Consortium members should also have a positive net worth of Rs. 20 Cr per annum in the last 3 financial years (FY 2016-17, FY 2017-18, FY 2018- 19)

Sole Bidder should have a working capital facility limit of Rs.60 Cr and with their bankers as on date of participation.

The OFC manufacturer should have minimum annual average turnover of Rs.200 Crores from the sale of Optical Fibre and telecom Cables in the last three financial years

EXPERIENCE

Sole Bidder or consortium should Sole Bidder/ Lead Bidder or have executed work to the minimum consortium should have individually value of Rs 207 Crores in Optical executed works to the minimum value Fibre cable laying for Telecom of Rs 207 Crores in Optical Fibre infrastructure in the last 3 financial cable laying/ Services for Telecom years (FY 2016-117, FY 2017-2018, infrastructure in each of the last 3 FY 2018-19) financial years (FY 2016-117, FY 2017-2018, FY 2018-19)

h) The original tender norms, issued for Package – C during December 2019, required the bidder to have a minimum cumulative annual turnover of Rs.620 crores for the last 3 financial years and to evade the other OEM (Original Equipment Manufacturers) and OFC (Optical Fiber Cable) Manufactures from participating the bidding, the tender norms had been modified on 15.04.2020 and requires the bidder to have an average turnover of Rs.620 crores for the last 3 financial years and few other conditions for the consortium members as mentioned in the above table which makes it impossible for the other manufacturing companies who participated in the pre – bidding

meeting. This is a major anti-competitive clause as the required turnover has been increased by about 400 percent. i) As per the original tender norms, issued for Package – C during December 2019, required the consortium members should have executed work to the minimum value of Rs.207 Crore in Optical Fiber cable laying for Telecom infrastructure in the last 3 financial years whereas after the amendment the consortium members or sole bidder requires to have executed works to the minimum value of Rs.207 Crore in Optical Fibre Cable laying for Telecom infrastructure in each of the last 3 financial years.

PACKAGE D

TENDER REFERENCE - NIT/TANFINET/001PACKAGE-D

ORIGINAL TENDER NORMS MODIFIED TENDER NORMS

TURNOVER

Sole Bidder or Lead Bidder should have Sole Bidder or Lead Bidder should have a minimum cumulative annual turnover an average annual turnover of Rs. 550 Cr of Rs 552 Crores for the last 3 financial for the last 3 financial years (FY 2016-17, years (FY 2016-117, FY 2017-2018, FY FY 2017-18, FY 2018-19) 2018-19)

In case of consortium, the turnover of In case of a consortium, of each of the junior partner will not be considered for consortium members should have an this purpose. average annual turnover of Rs. 150 Cr (other than the Lead Bidder) for the last three years (FY 2016-17, FY 2017-18, FY 2018-19).

Sole Bidder/ lead bidder should have positive net worth of Rs. 70 Cr each of the last 3 financial years (FY 2016- 17, FY 2017-18, FY 2018-19)

Consortium members should also have a positive net worth of Rs. 20 Cr per annum in the last 3 financial years (FY 2016-17, FY 2017-18, FY 2018- 19)

Sole Bidder should have a working capital facility limit of Rs. 50 Cr with their bankers as on date of participation.

The OFC manufacturer should have minimum annual average turnover of Rs.200 Crores from the sale of Optical Fibre and telecom Cables in the last three financial years

EXPERIENCE

Sole Bidder/ Lead Bidder consortium Sole Bidder or consortium should have should have individually executed works executed works to the minimum value of to the minimum value Rs. 184 Cr Rs 184 Crores in Optical Fibre cable mentioned below in Optical Fibre cable laying for Telecom infrastructure in each laying/ Services for Telecom of the last 3 financial years (FY 2016-117, infrastructure in the last 3 financial years FY 2017-2018, FY 2018-19) (FY 2016-117, FY 2017-2018, FY 2018- 19)

j) The original tender norms, issued for Package – D during December 2019, required the bidder to have a minimum cumulative annual turnover of Rs.552 crores for the last 3 financial years and to evade the other OEM (Original Equipment Manufacturers) and OFC (Optical Fiber Cable) Manufactures from participating the bidding, the tender norms had been modified on 15.04.2020 and requires the bidder to have an average turnover of Rs.550 crores for the last 3 financial years and few other conditions for the consortium members as mentioned in the above table which makes it impossible for the other manufacturing companies who participated in the pre – bidding meeting. This is a major anti-competitive clause as the required turnover has been increased by about 350 percent.

k) As per the original tender norms, issued for Package – D during December 2019, required the consortium members should have executed work to the minimum value of Rs.184 Crore in Optical Fiber cable laying for Telecom infrastructure in the last 3 financial years whereas after the amendment the consortium members or sole bidder requires to have executed works to the minimum value of Rs.184 Crore in Optical Fibre Cable laying for Telecom infrastructurein each of the last 3 financial years. l) The requirements for the Original Equipment Manufacturers (OEM) and Optical Fiber Cables (OFC) manufacturers have now been made tougher through the corrigendum. The eligibility criteria have been changed in all the 4 packages namely., Package-A, Package-B, Package-C and Package-D which will result in eliminating bidders who participated in pre – bidding meeting. The initial notification was published for four packages A,B,C and D with values of Rs. 350 crore, Rs 550 crore, Rs 550 crore and Rs 500 crore respectively.

TENDER NORMS FIXED BY TNIDB VIOLATED

m) The policies of tender issued in December, was approved by the executive committee of the Tamil Nadu Infrastructure Development Board (TNIDB), which framed the eligibility conditions for the tender. The modification of the tender conditions is in violation of the decision of the TNIDB. The reason for increasing the original eligibility criteria of turnover and experience at a sky – scraping rate which has been scrutinized and approved by 15 IAS officers is uncertain and indiscreet.

CORRUPTION IN THE PROCUREMENT OF WALKIE TALKIES BY HON’BLE FISHERIES MINISTER MR.D.JAYAKUMAR

On 02/06/2020 Mr.Sudarsanam our party MLA has lodged a complaint with the CBI and Directorate of Vigilance and Anti corruption Chennai and the gist of the Complaint is as follows

1. The Fishermen of Tamil Nadu have been facing, for the past five decades, severe hardships when they inadvertently cross over into the territorial waters of Sri Lanka while fishing.Particularly, the fishermen of Ramanathapuram, Nagappattinam and TuticorinDistricts are often arrested, tortured and sometimes even killed by the Sri Lankan Navy and Coast Guard on the pretext that they cross over from the territorial waters of India into the territorial waters of Sri Lanka while fishing. With a view to assuage the concerns of the fishermen, and to protect their lives and safety, the Government of Tamil Nadu lead by the DMK Party in the year 2008 issued G.O.Ms.No.624, dated 31.10.2008 proposing to bring in a hi- tech modern system of warning fishermen who inadvertently cross the 12 nautical miles territorial borders of India while fishing. The crux of the project was that the Government will create a communication network across Tamil Nadu, covering the adjacent coast line as well by erecting communication towers across the State and hand over Very High Frequency (VHF) Walkie Talkie handsets to the fishermen. These handsets are capable of being contacted by individual command centres located at various places in the State. The system is that when a particular fisherman is about to cross the international boundary, a warning can be sounded by the command centre by buzzing his individual walkie talkie and inform him that he is about to leave Indian Waters and also direct him appropriately to return to

83 safety. The Government had initially constituted a high level expert Committee for the identification of appropriate technology. Thereafter, the Government floated an international expression of interest (EOI) on 02.03.2006 and the bids were subsequently opened on 04.04.2008. Upon consideration of the letters of intent that were received, the Government settled on VHF basedtechnology which was found to be most suitable for the object that was sought to be achieved. An initial budget estimate of Rs.57.60 Crores was outlaid and an Empowered Committee was constituted to look into the technical feasibility of the project. Accordingly, the Empowered Committee, on 09.04.2008, granted in-principle approval for the project and directed the Commissioner of Fisheries to execute the project in two phases. Phase 1 was to be a Pilot Project to test the effectiveness of the technology within a chosen sample district and thereafter Phase 2 was to upscale the project to the rest of the State. The Government also nominated the Electronic Corporation of Tamil Nadu (ELCOT) as the nodal agency for the implementation of the project vide G.O.Ms.No.624, dated 31.10.2008. 2. Accordingly, the Pilot Project was commissioned by ELCOT after obtaining financial sanction of about Rs.7.75 Crores vide G.O.Ms.No.624 dated 31.10.2008. The Ramanathapuram District was identified for the Pilot Project and 3 Towers were built in Thondi, Pamban and Erwadi Taluks within the District. Thereafter about 3100 walkie talkie sets of 5W power were procured through open tender by the Government. Two companies namely M/s Pat & Venky and M/s V-Link Systems emerged successful and were awarded work contracts dated 18.08.2010. The Walkie Talkies were thereafter supplied by the said companies. In so far as the erection of towers, tender was floated in the year 2009 - 2010 and one M/s

Jaihind Contractors Private Limited emerged as successful bidder and was awarded the contract to erect three towers, each 60 mtrs high. The Government of Tamil Nadu had also obtained licence under the relevant WPC Rules for the operation of these towers from the Department of Telecommunications, Government of India. The Licence was granted on 17.02.2010 by the Department of Telecommunication. The Pilot Project was tested by the Government of Tamil Nadu in the year 2010. A team comprising of the Superintendent of Police (Technical), Officials from the Fisheries Department, Consultant of the Fisheries Department, Officials of the State Government and a few Fishermen were taken on two boats about 17 Nautical Miles away from the coastland of Ramanathapuram District and the system was tested. The technical report submitted thereafter would show that the Pilot testing was a roaring success and the project achieved the object of the Government in conceiving the project. The 3 towers and the repeaters on them seamlessly worked to locate the boats and the walkie talkies on the boat carried by the testing team were able to communicate with the make-shift command centres. However, before a permanent command centre could be established for the Pilot Project in Ramanathapuram District, the Model Code of Conduct for the ensuing Tamil Nadu Legislative Assembly Elections which were scheduled in May 2011 came into force and the tender could not be floated for the command centre. 3. While so, when the matter stood thus, there was change in Government after the General Elections for the Tamil Nadu Legislative Assembly in May 2011. After the AIADMK Party came to power, due to extraneous reasons, political considerations andmalafide intentions, the new Government initially sought to shelve

85 the project. In fact, the ELCOT had submitted a detailed report after testing of the Pilot Project in February 2011 stating that the Pilot Project was a huge success and it must be successfully implemented and extended to the rest of the State. The ELCOT had also outlined the steps in scaling the project for the entire State. Thereafter, when the AIADMK Party was at the helm of affairs, the Fisheries Department, for the reasons best known to it had decided to terminate the association of ELCOT with the project and accordingly, all the money that was sanctioned and released to ELCOT were taken back by the Fisheries Department. 4. It appears that the AIADMK Government then decided to carry forward the project in a wholly different manner than what was contemplated by the DMK Government in 2008 and the path outlined by ELCOT after the Pilot Project was tested successfully. 5. The then Commissioner of Fisheries, Dr.Beela Rajesh had floated a tender in June 2015 for international competitive bidding for 18,700 Nos. of 5W VHF walkie talkies and 2600 Nos. of 25W VHF walkie talkies. It is pertinent to note that at the time of floating this tender, no tenders were floated for the installation of towers or repeater equipment at the 21 locations that were required as per the report of ELCOT report pursuant to the Pilot testing. 6. In fact before the floating of the tender in June 2015 for the purchase of 21,300 walkie talkies, the Government, after accepting the recommendations of the Commissioner of Fisheries had constituted a Tender Technical Scrutinizing Committee (TSC) and Tender Award Committee (TAC). The members of the TSC were as follows:-- 1. Superintendent of Police (Technical Services) 2. Representative from National Institute of Ocean Technology

3. Representative from Indian Coast Guard 4. Representative from BSNL 5. Representative from DGLL 6. The Assistant Director of Fisheries 7. Procurement Consultant in the office of the Commissioner of Fisheries, Chennai. Though no Chairman was appointed for the Committee, the Superintendent of Police (Technical Services) acted as the Chairman of this Committee. The Tender Award Committee comprised of the Commissioner of Fisheries as its Chairman, Financial Advisor and Chief Accounts Officer, Office of the Commissioner of Fisheries, Additional Director of Fisheries, Superintendent of Police (Technical Services), Managing Director, TAFCOFED, Joint Director / Deputy Secretary to Government of Animal Husbandry, Dairying and Fisheries Department as its members. 8. After the tender was floated in June 2015, a pre-bid meeting was held for the international competitive bidding document at the office of the Commissioner of Fisheries, Chennai on 23.06.2015. In the said meeting, all the representatives of prospective bidders insisted that the availability of infrastructure for seamless communication namely towers, repeater equipment, etc. must be a pre-cursor for the procurement of end user equipment like walkie talkies since it is but obvious that without the towers and the repeater equipment, merely purchasing the walkie talkies is irrational and a colossal waste of public money. Further, the representatives uniformly insisted that the bidders must complete the licensing formalities required for the operation of walkie talkies before bidding. The Commissioner of Fisheries concluded the said pre-bid meeting by stating that appropriate corrigendum are to be issued in the

87 international competitive bidding document in view of the objections that were raised. Subsequently, the said corrigendum was issued on 10.12.2015 with a few corrections in the technical specifications alone. However, the tender inviting authority had not considered the objections of the bidders that the infrastructure such as towers and repeater equipment are not available till date and that the Government must float tender for the same as well failing which the entire exercise would be rendered otiose. After the publication of the corrigendum on 10.12.2015, the last date for submission of bids was fixed on 01.02.2016 and the bids were opened on 01.02.2016. 9. It is a matter of record that one M/s Arya Communications and Electronics Services Private Limited was chosen as the successful bidder and a work order was issued to them for the supply of 2600 25W VHF and 18,700 5W VHF Walkie Talkies for a total contract amount of Rs.35.72 Crores vide letter of acceptance dated 16.12.2016. Thereafter, a work order was issued for the same. Therefore, in January 2016, the Government floated separate tenders for installing repeater equipment only, without towers, at about 21 locations for a total contract value of about Rs.70 Lakhs. Even at this juncture, all the prospective bidders raised an objection that floating a tender for repeater equipmentalone without towers on which the repeater has to be installed is arbitrary, irrational and nothing but a waste of government resource. The Commissioner of Fisheries Dr.Beela Rajesh also released the bid security and cancelled the tender for 15 repeater stations on 07.11.2016 without assigning any reasons after a lapse of about 10 months. However, subsequently, without any further reasons, the Government once again floated a tender for repeater equipment in February 2017 reducing the number of locations to 8 locations and changing the

88 technical requirement from ‘analog’ to ‘analog cum digital repeaters’. The said change was irrational and not based on any tangible reasons since digital repeaters are twice of expensive as analog repeaters without any tangible benefits to the Government. It is a matter of record that one M/s Pat and Venky were the lowest bidders (L1) in this tender floated in February 2017 and it is a fact that this Company was L1 in the first tender also floated in January 2016 for repeater equipment. For the reasons best known to them, the Government once again cancelled the tender for repeater equipment in November 2017 without ascribing any reasons. Subsequently, a third tender was floated by the Government in November 2017 for the same repeater equipment in which the Government had modified the technical specifications of the repeater equipment of 50W from 50% duty cycle to 100% duty cycle. Once again there is no rational basis for changing the specification of the duty cycle for 50W repeater equipment since the WPC License obtained by the Government for the present project is only for 25W equipment and no change has been carried on in so far as the 25W equipment are concerned. It is pertinent to note that the said Dr.Beela Rajesh acting under the instructions of Hon’ble Minster for fisheriesand acting in conspiracy and collusion with the said M/s Arya Communications specifically brought in tailor made clauses such as the change in power output of repeater equipment to 50W with 100% duty cycle so that the earlier bidder of M/s Pat andVenky would be ineligible and only M/s Arya Communication would be left to award the tender. Therefore, the frequent calling and cancelling of tenders is only to ensure that bids of the competing companies are received, then subsequently the tender specifications are altered to tailor make the tender for the person chosen by the then Secretary and

Commissioner of the Fisheries Department and then Principal Secretary and Commissioner for Revenue Administration acting under the orders of the then Fisheries Minister namely Mr. D.Jayakumar. 10. The reason that the above facts are being stated in this representation is to show that till today even though walkie talkies have been purchased by entering into an agreement for Rs.35.72 Crores, the Government has not taken any steps to float a tender to install towers which is a basic prior requirement to install a repeater equipment without which the entire network cannot function. It is akin to purchasing a Television Set without a set top box. This shows there was an ultimate undue haste in concluding the tender and ignoring the fundamental requirement just to favour M/s Arya Communicattions. 11. Further, the shocking details have emerged regarding the high level corruption and manipulation of the Technical Specification Committee reports by the Tender Accepting Authority particularly in order to favour the private bidder namely, M/s Arya Communications and Electronics Services Private Limited. The Tender Scrutinizing Committee’s Meetings and Minutes show that glaring irregularities were discovered bythe members of the TSC with regard to award of the tender to M/s Arya Communications and Electronics Services Private Limited. But the Commissioner of Fisheries and the Secretary to Government, Fisheries Department without heeding these objections had proceeded in furtherance of a conspiracy for personal gain, with mala fide intention, and for extraneous reasons to favour and award the contract tothe said company. The sequence of events showing the glaring illegalities and nexus between the Hon’ble Minister,officials and the private bidder are as follows:-

• In minutes of the TSC Meeting held on 02.03.2016, the Superintendent of Police (Technical Services) namely, one Mr.M.Anbuchezhian, after scrutinising the performance certificate of both the bidders informed that the certificate of the bidders are not in conformity with the conditions of the bid document. • In the Fourth Meeting of the TSC held on 09.04.2016, the TSC noticed that the credibility of the VHF Equipment manufactured by M/s Arya Communications and Electronics Services Private Limited were to be doubted and had sought clarifications from the bidder and sought the following clarifications from the bidder: (i) The derivation from the original brochure document for the technical specification as per the tender requirement is complied or not? Whether the firm can give an undertaking in writing to that effect. (ii) The performance certificate obtained from Police department and submitted by the company is in plain paper, not on any official letter head of the Government department. Why? Clarify. (iii) Few technical specifications presented in the product brochure and that one in the current website is having variations. It seems that the tender document has been prepared by Arya Communications in order to comply with the specification as requested in the bid document. The manufacturer and the bidder are hereby insisted to furnish their stand on this matter. (iv) Whether the marine VHFs (both 25W and 5W) including the parts are manufactured in Vietnam and/or assembled there? (v) The Manufacturer and the bidder during the meeting informed that the product will be produced and supplied as per the specification mentioned in the bid document by incorporating/ modifying the product. Whether new certification from the concerned

91 authority will be obtained by the manufacturer for the modified product? • Thereafter, in the Fifth Meeting held on 27.04.2016, the TSC had recorded that based on the information furnished by the bidder pursuant to the questions raised in the previous meeting, the bidder namely M/s Arya Communications and Electronics Services Private Limited had accepted that the walkie talkie models proposed tobe given by them have not been marketed yet and these models are specifically designed only for the requirement of the Government of Tamil Nadu. Meaning thereby, the said company was trying to dump the Government of Tamil Nadu with walkie talkies that have never before been sold by it to anybody. Hence, the performance of these walkie talkies has never before been assessed. • In the same meeting, the Superintendent of Police (Technical Services) had agreed to substantiate the technical and commercial aspects of the tender in a valuation report to be prepared by him. The Superintendent of Police (Technical Services) had also circulated a detailed report to the Members pointing out glaring defects in the eligibility conditions of M/s Arya Communications and also pointed out that the performance certificates produced by it is unsatisfactory. As a matter of fact, the performance certificate of Motorola GP 338 produced by M/s Arya Communications records that the voice ducer’s battery needs to be changed since it is leaking and not working. Further, the tender requirements was that the tenderer should produce satisfactory working certificate for a period of one year. However, M/s Arya Communications has not produced one certificate for one year but has produced only a bunch of certificates which together constitute a period of one year.

Subsequently, the DGLL representative one Mr. Muruganandam had recorded that the model of walkie talkie quoted by M/s Arya Communications and Electronics Services Private Limiteddid not conform to the technical specifications required in the tender. In fact, the bidder had accepted the deficiencies but only as an afterthought had tried to convince the technical committee that the technical specs would be modified and designed as per the requirements of the Fisheries Department. Hence, prima facie, as per the bid submitted by the M/s Arya Communications and Electronics Services Private Limited, the model of the walkie talkie proposed to be supplied by them did not meet the tender requirements as recorded by the member of the TSC. 12. In the final report of the TSC that was submitted to the tender award committee, all the objections raised by Mr. Muruganandam in the previous meeting were not considered and in fact the signature of Mr. Muruganandam was not obtained and he was instead marked “absent”. We are informed that in fact Mr. Muruganandamwas not even called for the meeting when the report was signed, in the apprehension that he might record his dissent. 13. Further, the Tender Award Committee’s report was dissented to by Mr.M. Anbuchezhian, Superintendent of Police (Technical Services) himself by stating that the bid of M/s Arya Communications and Electronics Services Private Limited needs to be re-evaluated in light of the non-conformity with the technical specifications and pre- qualification requirements. In fact since the Superintendent of Police (Technical Services) had raised objections and revealed that M/s Arya Communications and Electronics Services Private Limited was not qualified to be awarded the tender, immediately, the then Commissioner of Fisheries namely, Dr.Beela Rajesh had addressed

93 the Inspector General of Police, Technical Services vide letter dated 25.05.2016, requesting nomination of another person from the Technical Services Division of the Police Department in place of Mr. Anbuchezhian. It is to be pointed out at this juncture that the constitution of Technical Scrutinizing Committee and Tender Award Committee was made vide G.O.Ms.No.215 dated 19.11.2015 by the Government. Any change in constitution of these committees cannot possibly be done at the instance of the Commissioner of Fisheries who is nothing but the Chairman of the Award Committee. However, it appears that the Inspector General of Police (Technical Services) vide letter dated 31.05.2016, had obliged Dr.Beela Rajesh in her illegal request and suggested that the Commissioner of Fisheries can utilize the services of one Mr. Udaya Shankar, serving as an Additional Superintendent of Police (Technical Services) in place of Mr. Anbuchezhian. It is to be pointed out that this Additional Superintendent of Police Mr. Udaya Shankar is an officer lower in rank to Mr. Anbuchezhian and he was reporting to Mr. Anbuchezhian at that point. In any case, it appears that the said Mr. Udaya Shankar had refused to join the committee. Thereafter, vide letter dated 18.08.2016, the Commissioner of Fisheries had addressed the Additional Director General of Police, Technical Services to depute Mr. Anbuchezhian to compulsorily to attend the Tender Award Committee meeting on 12.05.2016 to sign the minutes of the meeting. Subsequently, when Mr. Anbuchezhian attended the meeting of the Tender Award Committee on 12.05.2016, he had signed the report subsequently on 19.08.2016 with a dissent note that the pre-qualification requirements of the firm would have to be re-checked again since M/s Arya Communications and Electronics Services Private Limiteddid not meet the pre-qualification

94 requirements. However, without any regard for his dissent, the tender was awarded to the said M/s Arya Communications and Electronics Services Private Limited. 14. Another member of the Tender Award Committee namely, the Assistant Commandant HQ, Indian Coast Guard, vide undated letter in reply to an email dated 09.05.2016 has stated that for ensuring quality and time bound delivery of the products, factory acceptance trials must be conducted in the presence of nominated members so that the test reports along with specifications of the communication sets can be certified by any National or International Certifying Agency. Such factory acceptance tests have not been done till date. Further the email communications between the members of the TSC particularly between Mr. Anbuchezhian and the other members of the Committee show that the technical specification requirements in the tender were not met by M/s Arya Communications and Electronics Services Private Limited and the products would have to be modified and designed as per the requirements of the tender. However, even without demanding the said M/s Arya Communications and Electronics Services Private Limited to modify the product in accordance with the tender and evaluate the same after factory testing, the Tender Award Committee has proceeded to award the tender. Therefore, the above facts would clearly go to show that the Tender Award Committee headed by Dr.Beela Rajesh and the then Secretaries of Fisheries Department namely S. Vijayakumar and G.S.Bedi have blatantly manipulated and ignored the reports of the Tender Scrutinizing Committee and the Specification Committee and have permitted the award of the tender to a bidder who does not even qualify the pre- qualifications prescribed by the tender acting under the instructions

95 of the Minister for Fisheries Mr Jayakumar. Further the fact that till today no tender has been floated for the erection of towers (two tenders were called for repeater equipment and shore distress communication equipment but subsequently cancelled) but a contract has been awarded for the procurement of walkie talkies which have a shelf life of only 6 years and their batteries have a shelf life of one year and have to be replaced after that shows that the public exchequer is being squandered by these persons for extraneous reasons to award the contract to the said M/s Arya Communications and Electronics Services Private Limited for personal gain and oblique motives. Thus the official powers has been abused and misused to favour M/s Aarya Communications .There is no rationale in procuring walkie talkies that too to the tune of Rs.35.72 Crores if towers and repeaters which are basic fundamental essential parts of the communication network have not been procured and installed. 15. It is also pertinent to note that if the procedures laid down by the ELCOT and the Government in the previous Government Orders were followed scrupulously and tenders were floated in accordance with the technical requirements, then the communication network would be up and running by now and consequently the lives of several fishermen could have been saved from the recent cyclone Ockhi. This is squarely due to corrupt act of Hon’ble Minister for fisheries Mr Jayakumar and the officials. More so these fishermen can also be saved from the regular recurring problems of arrest, detention and attack by the Sri Lankan Navy and Srilankan fishermen . 16. Therefore, we state that prima facie there is evidence of corruption, abuse and misuse of official power to favour the private company which is punishable under the Prevention of Corruption Act

96 committed by the officials who were at the helm of affairs at the relevant period namely Dr.Beela Rajesh, the then Commissioner of Fisheries, the then Secretary to Government, Fisheries Department namely S. Vijayakumar and Mr. G.S.Bedi, the Principal Secretary to Government and Commissioner for Revenue Administration namely Mr. T.S. Sridhar, Mr. Atulya Mishra, and Satyagopal acting under the directions and instructions of the Minister for Fisheries for the relevant period namely, Mr. D.Jayakumar and other officials of the Fisheries Department involved in the tender process. This has to be investigated seriously since there has been a huge loss to the public exchequer to the tune of Rs.30 Crores. Further, there are huge kickbacks involved in the present case to the aforesaid persons paid by the successful tenderer namely M/s Arya Communications for awarding the tender in his favour.It is a matter of record that the State Government has now resorted to a loan from the International Bank for Reconstruction and Developmentto finance the project. Hence, it is public money that is being used to service this huge loan. Since high level Government officials are involved in the above scam, the State Police cannot investigate this case freely and fairly. The case has to be necessarily investigated by the Central Bureau of Investigation. This can be done only if either state government request CBI to register and take up the investigation or the DVAC registers the complaint and transfer the investigation.

CONCLUSION

In light of the abovementioned allegations and complaints, the Dravida Munnetra Kazhagam, represents that the material provided herein above is sufficient to initiate inquiry under provisions of the Constitution of India and various statutes including Indian Penal Code, Prevention of Corruption Act, Transparency in Tenders Rules and so on. We further impress, through this representation, that any restraint from proceeding with the lawful criminal prosecution, would destroy the faith of the people of Tamil Nadu in the rule of law. The Hon’ble Supreme Court has reiterated in a number of cases that the rule of law forms the bedrock of our democracy and this is postulated in the famous words, which we reproduce here: “Be you ever so high, the law is above you.” In the case of Vineet Narain&Ors v. Union of India, the Hon’ble Supreme Court observed that “the holders of public offices are entrusted with certain powers to be exercised in public interest alone and, therefore, the office is held by them in trust for the people. Any deviation from the path of rectitude by any of them amounts to a breach of trust and must be severely dealt with instead of being pushed under the carpet. If the conduct amounts to an offence, it must be promptly investigated and the offender against whom a prima facie case is made out should be prosecuted expeditiously so that the majesty of law is upheld and the rule of law vindicated.” The words of the Hon’ble Supreme Court must not be rendered ineffective in the state of Tamil Nadu and we urge you to exercise your Constitutional powers to ensure that the rule of law is upheld and democracy is saved. We hereby request you to direct the Directorate of Vigilance and Anti-Corruption to inquire and register cases under Section 17A of the Prevention of Corruption Act - 2018 and investigate the cases as per law.

Yours Sincerely, Sd. XX XX XX (M.K. STALIN)