Several teams of the Directorate of Enforcement (ED) launched simultaneous searches at sand mining sites, sales depots and other locations suspected to be involved in a sand mining scam, across Tamil Nadu, based on allegations of money laundering and large-scale tax evasion, official sources said on Tuesday.
ED officials arrived at more than 25 locations to investigate allegations of money laundering in the sale of a huge quantity of sand mined from riverbeds and sold at designated sand depots or sales points managed by the T.N. Water Resources Department.
As per the existing practice, sand is sold online through the website of the Water Resources Department and an e-receipt issued at the depots. While e-receipts are issued for online sales, the allegation is that a sizeable quantity of sand is sold offline, and not brought into the record on a daily basis. Investigating officials are probing into whether tax was credited to government accounts from the e-bills issued to thousands of lorry owners/operators, the sources said.
A Tamil Nadu senior police officer said there was no formal communication of the searches, and the ED teams had taken the support of the Central Armed Police Force for their investigations. “There is information that searches are going on in more than 25 locations in Vellore, Tiruchi, Karur, Pudukottai etc at sand sales depots and the offices/residences of sand mining contractors,” a police officer said.
Sources said ED officials have been collecting the data of sand excavators operated along river beds in Tiruvallur, Kancheepuram, Vellore, Pudukottai, Tiruchi, Karur and other districts over the past few months. Investigators have also been gathering information on the sand lorries that have entered sand sales depots at about 15 locations in these districts to purchase and transport sand.
Besides scrutinising footage from Closed Circuit Television Cameras (CCTVs) installed at the sand sale depots, the ED teams are also trying to access video recordings at toll plazas and other points on the roads leading to the depots. Devices used to store the data of sand sales would also be verified, the sources said.
The approximate quantum of sand sold and the money earned through online and offline modes, and how much of it was on record will form part of the investigation into the alleged money laundering case, the sources added.
Searches at residence of sand mining contractor in Pudukottai
In Pudukottai distict, ED officials launched simultaneous checks at the office and residence of sand mining contractor S. Ramachandran.
Split into teams, the ED officials began their checks at Mr. Ramachandran’s office in Pudukottai town and at his residence near Vallathirakottai in the morning. Para-military personnel provided security cover to the ED teams during the checks at both places, said police sources.
Another ED team escorted by para-military personnel conducted checks at the Kondayampettai sand storage point in Tiruchi city.
The searches are also ongoing at the premises of a sand mining contractor Rathinam, and persons associated with him, official sources said.
