The Enforcement Directorate has registered a PMLA case to examine alleged money laundering linked to a Tamil Nadu private school recognition racket. The action follows a Chennai Central Crime Branch investigation into alleged collections exceeding Rs 100 crore from school managements seeking recognition, upgrades and statutory approvals. Investigators have identified bank accounts linked to prime accused P T Arasakumar, his family and another accused, Muthukumar. The ED is expected to examine whether the alleged collections constitute proceeds of crime and whether funds were transferred, concealed or used to acquire assets.
ED Launches Money Laundering Probe Into Rs 100 Crore Tamil Nadu School Recognition Racket
The Enforcement Directorate has registered a PMLA case after a probe by the Chennai CCB into alleged collections from private schools seeking government recognition and statutory approvals.
The Enforcement Directorate (ED) has registered an Enforcement Case Information Report under the Prevention of Money Laundering Act to probe the Tamil Nadu private school recognition racket for money laundering.
The ED action follows a First Information Report (FIR) filed by the Chennai Central Crime Branch (CCB), which has been investigating allegations of collections of over Rs 100 crore from private school managements.
The CCB investigation said P T Arasakumar is one of the prime accused and had collected money promising government recognition, permanent recognition, school upgradation and other statutory clearances.
Complaints have been filed against 177 private school managements, and investigators are looking into alleged financial transactions, documentary links and movement of funds in connection with the case.
ED focuses on alleged financial trail
The ED officials have seized the CCB FIR and other investigation records and are likely to conduct a preliminary examination of the alleged financial transactions and money trail.
The central agency is probing whether money collected from school managements could be proceeds of crime and if such funds were transferred, concealed or used to acquire assets.
The original complaints alleged that payments were sought by promising approvals, including permanent recognition, school upgrades, Directorate of Town and Country Planning clearances and other government permissions.
Complaints from private school managements triggered the case. Police said Arasakumar used his association with an organisation representing private schools in seeking payments.
The financial trail has become a major part of the CCB probe, with investigators probing bank accounts linked to the accused and his associates.
Reports said 20 accounts linked to Arasakumar and his family and 29 accounts linked to another accused, Muthukumar, were identified so far during the investigation.
Anbil Mahesh Poyyamozhi enters CCB investigation
The CCB also expanded its inquiry to probe the alleged financial and documentary nexus involving former School Education Minister Anbil Mahesh Poyyamozhi and his associates.
Teams of the CCB raided locations linked to the former minister and his associates in Chennai and Tiruchirappalli on September 16, seizing documents and electronic devices.
Following the searches, more operations were carried out on September 29 at five places in Chennai linked to Arasakumar, Muthukumar and associates of Anbil Mahesh.
Police seized 44 documents and a laptop during the September 29 searches as investigators continued to probe the alleged financial and documentary links.
Anbil Mahesh Poyyamozhi appeared before CCB officers for questioning and has denied wrongdoing, while indicating that he would cooperate with the investigation.
The former minister has also moved the Madras High Court to quash the FIR registered against him in connection with the case.
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September searches and Arasakumar bail
Arasakumar had been in custody since June 27 before a special court granted him default bail after investigators failed to file their final report within 90 days.
The court allowed default bail on grounds of the investigating agency not completing the investigation within the stipulated period as prescribed by the statute.
The bail order did not constitute a finding on the merits of the allegations, keeping the underlying CCB investigation separate from the procedural basis for his release.
The entry of the ED now adds a financial-crime angle to the ongoing CCB probe, with the spotlight likely to be on transactions, assets and alleged proceeds.
ED officials will first go through the existing records and financial information to see if there is a need to question the accused or other suspects further.
Whether the alleged collections from private schools fall under the legal definition of the proceeds of crime under PMLA will be decided during the ongoing investigations.
The development is another stage in a case involving alleged private school approval payments, government recognition processes, and scrutiny of financial transactions, for Sprouts News.
