Express News Service
CHENNAI: The ED on Tuesday said it has seized cash of Rs 81.7 lakh, foreign currency, including British pounds, worth Rs 13 lakh and frozen fixed deposits worth Rs 41.9 crore during searches at seven locations linked to Higher Education Minister K Ponmudy and his son Gowtham Sigamani on Monday.
Minister K Ponmudy arriving for inquiryon Tuesday | Ashwin Prasa thThe case pertains to the alleged illegal issuance of red sand mining licences to Ponmudy’s relatives and benames between 2006 and 2011 when he was minister of mines. ED’s confirmation of the seizures could spell trouble for the minister, who was grilled by the central agency for nearly 20 hours from Monday.
Ponmudy and Sigamani were let off by the agency at 3.30 am on Tuesday only to return after 12 hours. The visibly tired 72-year-old minister and his 49-year-old son on Tuesday appeared at the ED office six minutes before 4 pm. They were questioned for six hours and let off.
Though ED did not furnish any details pertaining to searches at Senthil Balaji’s home, details about Ponmudy were shared by the agency, after allegations were raised by the ruling DMK. ED said proceeds obtained from illegal mining were deposited in benami accounts and were layered through multiple transactions and accounts.
“Two overseas entities, PT Excel Mengindo in Indonesia and Universal Business Ventures FZE in the UAE, were acquired. The Indonesian company was shown to have been purchased for Rs 41.57 lakh, and sold for over Rs 100 crore in 2022. It is suspected that huge sums of money were transferred through ‘hawala’ and infused in the purchase of these entities,” the agency said in a statement.
A sum of Rs 41.9 crore was frozen by ED under PMLA
According to sources, Sigamani made an overseas investment of $1,00,000 (then Rs 41,57,225) in March 2008 to acquire 2,45,000 shares of PT Excel Megindo, Jakarta, and $55,000 (Rs 22,86,924) in Universal Business Ventures, United Arab Emirates, without RBI approval and thereby contravened the provisions of Section 4 of the Foreign Exchange Management Act for the acquisition of foreign security. As a result of ongoing investigations, ED seized properties worth Rs 8.60 crore belonging to Sigamani in October 2020.
“During the search operation, unaccounted cash amounting to Rs 81.7 lakh was seized, along with unexplained foreign currency, primarily in British pounds, equivalent to approximately Rs 13 lakh from the residence of Ponmudy. In order to mislead the probe, a claim that the cash belonged to a family-owned hospital was made, and an attempt to falsify accounting records to introduce cash was detected by ED and prevented. A corroborating statement attesting to the above facts was obtained from the person concerned. Thus, there is no plausible explanation for this unexplained cash seized from the residence of Ponmudy,” the agency said in the statement.
ED said it has identified a trail of illegal proceeds derived from these activities, being used to acquire properties, companies and channelled into other investments. A sum of Rs 41.9 crore, identified as direct proceeds of crime, was also frozen under PMLA as it was held in the form of a fixed deposit.
Face issue bravely, CM tells minister
DMK president and CM M K Stalin spoke to Ponmudy over the phone on Tuesday and assured him of the party’s support in countering the BJP’s “political vendetta.” Stalin also sought details of the ED probe, an official release said. He asked Ponmudy to face the issue bravely and legally.
ALSO READ | Disproportionate assets: Ponmudy, wife walk free
CHENNAI: The ED on Tuesday said it has seized cash of Rs 81.7 lakh, foreign currency, including British pounds, worth Rs 13 lakh and frozen fixed deposits worth Rs 41.9 crore during searches at seven locations linked to Higher Education Minister K Ponmudy and his son Gowtham Sigamani on Monday.
Minister K Ponmudy arriving for inquiry
on Tuesday | Ashwin Prasa thThe case pertains to the alleged illegal issuance of red sand mining licences to Ponmudy’s relatives and benames between 2006 and 2011 when he was minister of mines. ED’s confirmation of the seizures could spell trouble for the minister, who was grilled by the central agency for nearly 20 hours from Monday.
Ponmudy and Sigamani were let off by the agency at 3.30 am on Tuesday only to return after 12 hours. The visibly tired 72-year-old minister and his 49-year-old son on Tuesday appeared at the ED office six minutes before 4 pm. They were questioned for six hours and let off.googletag.cmd.push(function() {googletag.display(‘div-gpt-ad-8052921-2’); });
Though ED did not furnish any details pertaining to searches at Senthil Balaji’s home, details about Ponmudy were shared by the agency, after allegations were raised by the ruling DMK. ED said proceeds obtained from illegal mining were deposited in benami accounts and were layered through multiple transactions and accounts.
“Two overseas entities, PT Excel Mengindo in Indonesia and Universal Business Ventures FZE in the UAE, were acquired. The Indonesian company was shown to have been purchased for Rs 41.57 lakh, and sold for over Rs 100 crore in 2022. It is suspected that huge sums of money were transferred through ‘hawala’ and infused in the purchase of these entities,” the agency said in a statement.
A sum of Rs 41.9 crore was frozen by ED under PMLA
According to sources, Sigamani made an overseas investment of $1,00,000 (then Rs 41,57,225) in March 2008 to acquire 2,45,000 shares of PT Excel Megindo, Jakarta, and $55,000 (Rs 22,86,924) in Universal Business Ventures, United Arab Emirates, without RBI approval and thereby contravened the provisions of Section 4 of the Foreign Exchange Management Act for the acquisition of foreign security. As a result of ongoing investigations, ED seized properties worth Rs 8.60 crore belonging to Sigamani in October 2020.
“During the search operation, unaccounted cash amounting to Rs 81.7 lakh was seized, along with unexplained foreign currency, primarily in British pounds, equivalent to approximately Rs 13 lakh from the residence of Ponmudy. In order to mislead the probe, a claim that the cash belonged to a family-owned hospital was made, and an attempt to falsify accounting records to introduce cash was detected by ED and prevented. A corroborating statement attesting to the above facts was obtained from the person concerned. Thus, there is no plausible explanation for this unexplained cash seized from the residence of Ponmudy,” the agency said in the statement.
ED said it has identified a trail of illegal proceeds derived from these activities, being used to acquire properties, companies and channelled into other investments. A sum of Rs 41.9 crore, identified as direct proceeds of crime, was also frozen under PMLA as it was held in the form of a fixed deposit.
Face issue bravely, CM tells minister
DMK president and CM M K Stalin spoke to Ponmudy over the phone on Tuesday and assured him of the party’s support in countering the BJP’s “political vendetta.” Stalin also sought details of the ED probe, an official release said. He asked Ponmudy to face the issue bravely and legally.
ALSO READ | Disproportionate assets: Ponmudy, wife walk free
