ED uncovers alleged cash-for-jobs scam in TN, asks state cops to probe

The Enforcement Directorate (ED) has flagged an alleged cash-for-jobs racket in the Tamil Nadu Municipal Administration and Water Supply (MAWS) department's recruitment drive.

The central probe agency has urged Tamil Nadu Police to launch an immediate investigation, handing over a 232-page dossier reportedly packed with evidence of bribes, rigged exams, and political favouritism.

Rs 25 lakh to manipulate selection?

The allegations, which surfaced during an ED raid earlier this year, point to corruption in the hiring process for over 2,500 posts, including assistant engineers, town planning officers, junior engineers, and sanitary inspectors.

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ED sources said that powerful politicians and their close associates allegedly pocketed between Rs 25 lakh and Rs 35 lakh per post to manipulate the selection, benefiting at least 150 handpicked candidates out of 1.12 lakh applicants who vied for the jobs in early 2024.

The alleged scam's exposure comes at a time when the MK Stalin-led DMK government is already feeling the heat from many controversies.

On August 6, Chief Minister Stalin personally handed over appointment letters to the very candidates now accused of securing their positions through illicit means — a ceremonial event that has suddenly turned into a political liability.

According to the ED's letter to Tamil Nadu's Head of Police Force, sent under Section 66(2) of the Prevention of Money Laundering Act (PMLA), the irregularities centred on exams conducted by Anna University in mid-2024. The dossier outlines the roles of suspected "lynchpin" — unnamed influential figures — and middlemen who allegedly facilitated bribe collections and disbursals. It also calls for a specific probe into Anna University officials for their alleged complicity in the exam tampering.

TVH bank fraud case probe

The investigation's roots trace back to a separate money-laundering probe into an alleged bank fraud case involving True Value Homes (TVH), a firm linked to N Ravichandran, brother of MAWS Minister KN Nehru.

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"This is not just about jobs; it's about eroding public trust in our institutions," a senior ED official said. The agency has demanded swift action to prevent the 150 implicated appointees from assuming duties, warning that delays could allow the scam's proceeds to dissipate further.

Govt’s muted rebuttal

The Stalin administration, caught off guard, has offered a muted rebuttal so far. D Karthikeyan, Secretary of the MAWS department, dismissed the ED's claims when reached for comment. "I was not aware of the ED’s letter, and the recruitment was done ‘perfectly fine’ without any irregularities," Karthikeyan insisted.

No official statements have emerged from CM Stalin's office or Minister Nehru at the time of publishing this story, though Opposition parties are already sharpening their knives.

The ED’s scrutiny of N Ravichandran — brother of Minister Nehru — traces back to a CBI investigation over a 2013 bank loan scam. Ravichandran's company, Truedome EPC India Pvt. Ltd, allegedly obtained a Rs 30 crore credit line from the Indian Overseas Bank (IOB) through deceptive means, only to divert the funds to affiliated entities within the family's TVH group.

The CBI lodged an FIR in 2021 following IOB's complaint of fraud and wilful default. However, the Madras High Court quashed the proceedings in July 2025. Citing the full repayment of the principal plus interest via a one-time settlement (OTS), the court held that no actual loss had been inflicted on the lender.

Criticism of ED’s strategy

Despite the CBI case's dismissal, the ED persists with a standalone money laundering inquiry under the Prevention of Money Laundering Act (PMLA). Raids in April 2025 targeted premises linked to Nehru's family, unearthing financial trails that allegedly bled into the now-exposed cash-for-jobs racket in the MAWS department.

Prominent anti-corruption crusader and Arappor Iyakkam founder Jayaraman has slammed ED’s strategy in the alleged cash-for-jobs scandal.

Jayaraman lamented the lack of follow-through in central-state collaborations on graft probes. "The Enforcement Directorate and Income Tax Department uncovered damning documents during their raids, yet asking the Tamil Nadu Police to merely write letters for additional investigation serves no purpose," he told The Federal.

"Be it AIADMK or DMK in power, central probe agencies have never acted on such letters, no matter the ruling dispensation. This vicious cycle must end. What we need is a bona fide, next-level investigation that leaves no stone unturned," he added.