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DVAC again raids two AIADMK ex-ministers in corruption case

The directorate of vigilance and anti-corruption (DVAC) on Tuesday raided 39 properties linked to AIADMK leaders and former ministers -- SP Velumani and C Vijayabaskar -- for alleged irregularities in municipal administration and health departments during the erstwhile AIADMK government

Published on: Sep 13, 2022, 23:38:38 IST
By , Chennai
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The directorate of vigilance and anti-corruption (DVAC) on Tuesday raided 39 properties linked to AIADMK leaders and former ministers -- SP Velumani and C Vijayabaskar -- for alleged irregularities in municipal administration and health departments during the erstwhile AIADMK government.

The directorate of vigilance and anti-corruption (DVAC) on Tuesday raided 39 properties linked to SP Velumani and C Vijayabaskar (HT)
The directorate of vigilance and anti-corruption (DVAC) on Tuesday raided 39 properties linked to SP Velumani and C Vijayabaskar (HT)

On September 12, fresh cases of corruption were registered against the two AIADMK heavyweights who are considered close to former chief minister and now AIADMK interim general secretary Edappadi Palaniswami (EPS).

According to the FIR registered by the DVAC, Velumani has been accused with awarding favourable tenders for a project announced by Palaniswami in the state assembly in 2015 to replace sodium street lights with LEDs, causing a loss of 500 crore to the state exchequer. Former health minister Vijayabaskar had allegedly issued an “essentiality certificate” to Vels Medical College and Hospital based on fake documents going against the regulations of the National Medical Commission.

After more than 10 hours of searches, the DVAC seized 10 four wheelers, an amount of 32.98 lakh, 1,228 grams of gold jewellery, 948 grams of silver articles and 316 incriminating documents and 2 locker keys.

Velumani & street lights

Tamil Nadu assembly speaker M Appavu had filed two complaints in 2019 and 2020 with the DVAC alleging that Velumani “hatched a plan to swindle public money” in the street lights project rolled out at the village panchayat level in a phased manner between 2015 and 2018. DVAC has filed the FIR naming Velumani and more than 10 others as accused in the case.

This is the third time that DVAC is raiding Velumani, at present an MLA from Thondamathur constituency in Coimbatore district. He had held the portfolio such as municipal administration, rural development, corporations and panchayat unions and others from 2014 to 2021.

EPS had announced in the assembly that 8 lakh street lights will be replaced with LEDs in rural areas estimated to be 300 crore. Totally, 115 tenders were floated for purchase of LED street lights from 2015 to 2018.

The DVAC says their enquiries have found that Velumani had willfully abused his official position while implementing the scheme “causing injudicious award of the tenders in connivance with unknown officials” offering undue advantage to a few companies.

The DVAC found that the district-level committee violated the entire tender process under the Tamil Nadu Transparency in Tenders Act, 1988, and Tamil Nadu Transparency in Tenders Rules 2000 under Velumani’s directions. “It clearly establishes the collusion and conspiracy at the inception of tenders,” the DVAC said in the FIR.

Giving an example, officials said the documents for the LED tenders in districts of Salem, Dharmapuri, Tiruchirapalli, Nagapattinam and Kanyakumari showed that five companies, who were awarded tenders. “The rate of procurement for the street lights was abnormally higher than the market rate,” DVAC said.

When compared for the five districts mentioned above, DVAC found that it caused a loss of more than 74 lakh crore to the exchequer.

“The prima facie material reveals that the same modus operandi might have been followed in the other districts to swindle the public money and caused loss to the government exchequer,” the DVAC concluded.

Ex-health minister and Vels hospital

The DVAC, in another FIR, accused former health minister Vijayabhaskar, who had spearheaded Covid-19 control when it first hit the state in March 2020, and senior government doctors of having failed in their public duty.

In November 2020, Vijayabhaskar approved an “Essentiality Certificate” to the Vels Institute of Science Technology and Advanced Studies (VISTAS) (deemed to be university) in Chennai to start a new medical college. It was issued to Ishari K Ganesh, noted educationist and film producer.

The DVAC’s investigation found that a field verification report by local authorities on June 11, 2020 for building approval clearly proves that the buildings of Vels Medical College was under construction. “...the major criterion that a fully functional hospital with 300 beds occupied with 60% of patients for minimum two years laid by the National Medical Commission to start a new medical college has not been fulfilled by the Vels Medical Hospital,” the FIR said.

Dr K Srinivasaraj, dean of Vels Medical College and Hospital was charged with creating and furnishing “boosted” data to doctors’ team on November 16, 2020 to get the essentiality certificate.

A surprise inspection by the DVAC on November 2, 2021 contended that the “patient load of the Vels Medical Hospital was stage managed and clinical materials of the hospital were grossly inadequate”.

DVAC said there were grounds to believe that by granting approval, Vijayabhaskar “received pecuniary advantage” from Ishari Ganesh.

AIADMK objects

After the DMK formed the government in May 2021, the DVAC has raided seven AIADMK leaders most of whom are close to EPS.

EPS, in a statement, said the DMK, which hiked electricity tariff this week, was trying to divert people’s attention away from it with the raids.

Previously, the DVAC had searched former ministers and MLA – Velumani (two cases besides a third on Tuesday), Vijayabhaskar, KP Anbazhagan (education), MR Vijayabhaskar (transport), P Thangamani (electricity), R Kamaraj (food) and former MLA KPP Baskar.

AIADMK leaders have been saying that the DMK was indulging in vendetta politics. “There is a malafide intent behind this (raid),” said AIADMK spokesperson D Jayakumar.

  • Divya Chandrababu
    ABOUT THE AUTHOR
    Divya Chandrababu

    Divya Chandrababu is an award-winning political and human rights journalist based in Chennai, India. Divya is presently Assistant Editor of the Hindustan Times where she covers Tamil Nadu & Puducherry. She started her career as a broadcast journalist at NDTV-Hindu where she anchored and wrote prime time news bulletins. Later, she covered politics, development, mental health, child and disability rights for The Times of India. Divya has been a journalism fellow for several programs including the Asia Journalism Fellowship at Singapore and the KAS Media Asia- The Caravan for narrative journalism. Divya has a master's in politics and international studies from the University of Warwick, UK. As an independent journalist Divya has written for Indian and foreign publications on domestic and international affairs.Read More