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The Tamil Nadu Directorate of Vigilance and Anti-corruption (DVAC) has registered a corruption case against former Municipal Administration and Water Supply minister KN Nehru and others, alleging manipulation of government tenders and collection of illegal gratification in the name of “party fund”.
Nehru, who is a Dravida Munntera Kazhagam (DMK) leader, has been booked along with 12 others including his two brothers, two former MLAs, government officials, and contractors.
The FIR, registered by the DVAC’s Special Investigation Cell at its headquarters in Chennai on September 4, names 13 accused in connection with alleged irregularities in contracts awarded under the Municipal Administration and Water Supply (MAWS) Department between 2021 and 2025.
The accused include Nehru’s brothers KN Manivannan and N Ravichandran, his close associate Kavi Prasad, private real estate firm True Valley Homes (TVH) representatives D Ramesh and D Prabhu, former Coimbatore Town Planning Officer R Sasipriya, former Regional Engineers G Balachandran and G Murugesan, former MLAs S Sudarshanam and JJ Ebenezer, office-bearers of C&T Constructions, and contractor K Sathish Kumar.
Unknown MAWS officials, contractors, private individuals, and companies have also been named.
The case stems from a 258-page report submitted by the Enforcement Directorate (ED) to the DVAC on December 3, 2025. The report alleged manipulation of government contracts and wrongful gains of about Rs 1,020 crore. Following permission from the state government, the DVAC registered a detailed enquiry in the same month.
According to the FIR, the enquiry prima facie found a nexus between public servants, private individuals, and contractors to manipulate the tendering process.
The agency alleged that preferred contractors were identified even before tenders were opened and that illegal gratification was collected from contractors, allegedly under “party fund”.
The alleged amount ranged between 7.5% and 10% of the value of the contracts, the FIR said.
Contracts allegedly prefixed
The DVAC has relied on WhatsApp chats, photographs, calculation sheets, and other material allegedly recovered from the mobile phones of the accused during the ED investigation.
According to the FIR, Kavi Prasad allegedly acted as an intermediary and maintained contact with senior IAS officers and other officials to obtain information about government works and tenders. This information was allegedly used to identify contractors before the bidding process.
One such instance relates to a Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB) contract for the outsourcing of operation and maintenance of the Madhavaram booster for three years.
The FIR cites a WhatsApp exchange dated September 6, 2021, in which former Madhavaram MLA S Sudarshanam allegedly shared details of the tender with Kavi Prasad. In one of the works, “C&T 75 lakh” was allegedly written on the communication, along with the contract value.
The enquiry noted that the communication was sent 22 days before the tender was opened. The DVAC alleged that C&T Constructions had been identified as the contractor even before the bidding process and that the work was eventually awarded to the same company.
The FIR also noted another alleged incident on July 30, 2024, when former RK Nagar MLA Ebenezer allegedly shared photographs of a letter containing details of stormwater drain contracts in Chennai with Prasad.
One record relating to three contracts, together worth Rs 525.31 lakh, were allegedly identified in advance. A calculation sheet allegedly linked to the contract showed Rs 55.15 lakh as “party fund”, which was approximately 10% of the contract value. Of this, Rs 15 lakh was marked as paid, while Rs 35.15 lakh was shown as pending.
The DVAC alleged that the three works were eventually awarded to contractor K Sathish Kumar on September 6, 2024.
However, the alleged identification of the contract had been recorded on July 30, while the bids were scheduled to be opened only on August 9.
The FIR has also cited tender and financial irregularities involving TVH Group representatives D Ramesh and D Prabhu, former Coimbatore Town Planning Officer R Sasipriya, former Regional Engineers G Balachandran and G Murugesan.
Case registered
Based on the materials collected during its inquiry, the DVAC said the allegations disclosed offences including criminal conspiracy, criminal breach of trust, cheating and criminal misconduct under relevant provisions of the Bharatiya Nyaya Sanhita (BNS) and the Prevention of Corruption Act.
The DVAC has taken up the case for investigation and submitted the FIR, along with the ED’s 258-page report, before the Principal Judge of the City Civil and Sessions Court in Chennai.
