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The Directorate of Vigilance and Anti-corruption (DVAC) on Monday, October 5, has launched an investigation into alleged illegal sand mining worth around Rs 4,700 crore under the previous Dravida Munnetra Kazhagam (DMK) government, based on evidence gathered by the Enforcement Directorate (ED) during its money laundering probe.
According to reports, the DVAC has issued notices to contractors, government officials and others allegedly involved in the illegal mining as part of its preliminary inquiry.
The inquiry is aimed at establishing whether a prima facie offence has been committed before a case is formally registered.
The ED, which has been investigating illegal sand mining in Tamil Nadu since September 2023, had earlier sought a criminal investigation into alleged collusion between government officials and private contractors.
In a letter dated June 2024, ED Joint Director Piyush Yadav of the Chennai Zone-1 wrote to the Tamil Nadu Director General of Police (DGP), seeking registration of an FIR and investigation into the alleged illegal mining.
The agency also sent a reminder to the DGP in July 2024, but no action was taken.
The ED's investigation under the Prevention of Money Laundering Act (PMLA) found that sand was allegedly excavated beyond the limits permitted by the state government at 28 river sand quarry sites.
The agency had informed the Madras High Court in 2023 that illegal sand mining and sales in Tamil Nadu could amount to around Rs 4,700 crore over a period of one to two years.
According to the findings submitted by the ED, sand mining permitted across 28 sites covered 196.37 hectares. However, the agency's assessment found mining activity across 987.10 hectares.
The ED engaged Terraqua UAV Solutions, a company incubated at the Indian Institute of Technology, Kanpur, to conduct a technical assessment of the mining sites.
The study used drone and LiDAR surveys, bathymetric surveys and satellite imagery processing to assess the extent of excavation at the 28 sites and surrounding areas.
The agency also obtained satellite imagery from the National Remote Sensing Centre, a unit of the Indian Space Research Organisation (ISRO), as part of its investigation.
The agency's findings covered 20 of the quarries, including sites at Echambadi in Tiruvallur, Kandaneri in Vellore, Enathimangalam in Villupuram, Kookur in Pudukkottai, Nerur North in Karur, Oruvanthur and Senthamangalam in Namakkal, Valakurachi in Ariyalur, Thiruchanampoondi in Thanjavur, Sathanur in Perambalur and Vadarangam in Nagapattinam.
The ED found violations involving both the permitted area and depth of excavation. At four quarries, the agency estimated that the quantity of sand excavated illegally was between 10 and 30 times the permitted quantity.
The agency also found that the Tamil Nadu government had awarded contracts to four firms for quarrying sand at 28 sites and transporting the quarried sand to designated sale depots.
The contractors named by the ED were VR Raja, MRM Ramaiya Enterprises Private Limited, K Infra, owned by O Pannerselvam and Karikalan, and RS Constructions, owned by A Rajakumar.
The ED’s investigation was launched amid allegations that large quantities of river sand were being excavated and sold illegally, causing revenue losses to the state and environmental damage.
In July 2024, the Madras High Court had ordered the agency not to take any further action in connection with the case and the Supreme Court upheld the High Court ruling and quashed the probe.
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