Madras HC denies anticipatory bail to Anbil Mahesh in alleged school approval racket

The Madras High Court on Monday, October 26 dismissed the anticipatory bail plea of former Tamil Nadu School Education Minister Anbil Mahesh Poyyamozhi in a case involving allegations that over Rs 100 crore was collected from private school managements in the guise of “party funds” in exchange for government approvals.

Justice V Lakshminarayanan passed the order, denying the former minister’s plea in the case being investigated by the Chennai police’s Central Crime Branch (CCB). 

The case centres on BT Arasakumar and Muthukumar, who claimed to be the founder-president and treasurer respectively of the Tamil Nadu Private Schools Association, an unregistered organisation. Arasakumar was a Dravida Munnetra Kazhagam (DMK) spokesperson and Muthukumar was a former MLA, who is currently absconding.

The duo were accused of collecting more than Rs 100 crore from private school managements by promising to secure permanent recognition from the government, school upgradation approvals, Directorate of Town and Country Planning (DTCP) clearances and other statutory permissions under the guise of “party funds” to the DMK, which was in power at the time.

According to complaints, Arasakumar allegedly claimed to have contacts within the government and assured private school administrators that he could arrange the needed permissions. However, he neither fulfilled the promises nor returned the money.

The CCB initially registered a case following complaints against Arasakumar under Section 7 (acceptance or demand of a bribe) and Section 12 (abetment of offences) of the Prevention of Corruption Act.

Arasakumar was arrested by the CCB on June 27 and subsequently detained under the Goondas Act on July 14. However, a special court in Chennai granted him bail on September 29 after the investigating agency failed to file its final report within the stipulated 90-day period.

The investigation was later expanded to probe the involvement of Anbil Mahesh, who held the School Education portfolio during the time.

The CCB on September 16 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. The former minister’s residence in Trichy’s Thennur 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.

A second round of searches was conducted on September 29 at five locations in Chennai. These premises were linked to Arasakumar, Muthukumar, and associates of Anbil Mahesh. Police seized 44 documents and a laptop during the searches.

The Enforcement Directorate on October 1 registered a case under the Prevention of Money Laundering Act (PMLA) in connection with the alleged Rs 100 crore racket. Its preliminary investigation is currently on tracing the money allegedly collected from private school managements and establishing how the funds were subsequently transferred or used.

During the October 21 proceedings before the Madras High Court, the state government strongly opposed the anticipatory bail plea. State Public Prosecutor R John Sathyan argued that custodial interrogation of the former minister was necessary to establish the whereabouts of the absconding accused, Muthukumar.

Opposing the state’s argument, senior counsel P Wilson, appearing for Anbil Mahesh, argued that custodial interrogation was not required. He pointed out that the CCB had already conducted searches at premises associated with the former minister, questioned him for more than eight hours, and collected his income tax returns and other documents. Wilson also submitted that Anbil Mahesh had cooperated with the investigation and was willing to continue doing so.

After hearing both sides, Justice V Lakshminarayanan deferred the decision on the anticipatory bail plea to October 26 and has now dismissed the plea.