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The Enforcement Directorate (ED) on Thursday, October 1, registered a case under the Prevention of Money Laundering Act (PMLA) in connection with an alleged Rs 100 crore racket involving private school approvals in Tamil Nadu. Former School Education Minister Anbil Mahesh Poyyamozhi has been named in the ongoing investigation.
The ED case is based on a First Information Report (FIR) registered by the Chennai Central Crime Branch (CCB), which has been investigating allegations that money was collected from private school managements by promising to secure government approvals and statutory clearances.
According to reports, the ED has obtained the FIR and other case records from the CCB and has begun examining the alleged financial transactions and money trail. Its preliminary investigation is focused on tracing the money collected from school managements and determining how it was subsequently transferred or used.
The case centres on BT Arasakumar, who claimed to be the founder-president of the Tamil Nadu Private Schools Association, an unregistered organisation. He is accused of collecting more than Rs 100 crore from private school managements by promising to obtain government recognition, permanent recognition, school upgradation approvals, Directorate of Town and Country Planning (DTCP) clearances, and other statutory permissions.
The complaints against Arasakumar were filed by private school managements, as well as DC Elangovan, secretary of the Federation of Associations of Private Schools in Tamil Nadu.
Elangovan alleged that Arasakumar collected money from school administrations by claiming that he had contacts in the government and could secure the necessary approvals. However, he neither fulfilled the promises nor returned the money, the complaint alleged.
The CCB investigation has so far covered complaints involving 177 private schools. Police have also been examining the alleged involvement of other individuals and their financial links to the case.
Sections 7 (accepting or demanding a bribe) and 12 (abetment of offences) of the Prevention of Corruption Act were subsequently added to the FIR. The investigation was also expanded to examine the role of former School Education Minister Anbil Mahesh Poyyamozhi. Based on the evidence gathered during the probe, the CCB initiated action against him under the provisions of the Prevention of Corruption Act.
On September 16, the CCB conducted searches at nine locations in Chennai and Trichy, including four premises linked to Anbil Mahesh and locations associated with his aides Valadi Karthik, Arun Prakash, and Prakash. Anbil Mahesh’s residence at Thennur in Trichy was among the premises searched.
During the searches, police seized property documents, bank details, cheques, and electronic devices. Anbil Mahesh was also questioned in connection with the case.
The CCB conducted another round of searches on September 29 at five locations in Chennai linked to Arasakumar, Muthukumar, another accused in the case, and associates of Anbil Mahesh. Police seized 44 documents and a laptop during these searches.
According to reports, investigators have identified and examined 20 bank accounts linked to Arasakumar and his family members, as well as another 29 accounts linked to Muthukumar.
The CCB arrested Arasakumar on June 27, following which he was detained under the Goondas Act on July 14. However, a special court in Chennai granted him default bail on September 29, after the investigating agency failed to file its final report within the stipulated 90 day period.
The court clarified that the bail was granted because the police had not completed the investigation and failed to file the final report within the statutory period. The order was not an assessment on the merits of the allegations against Arasakumar.