TN: CBI conducts mega search in Rs 5,800-crore sand-mining ‘scam’
The raids targeted property linked to Vaikundarajan, allegedly a key figure in the case, as well as property linked to a prominent sugar mill
The Central Bureau of Investigation (CBI) launched a massive operation across Tamil Nadu on Saturday (April 5) morning, searching over 20 locations in Chennai and Thoothukudi, in a crackdown on entities allegedly involved in a Rs 5,832-crore “illegal beach sand mining” scam.
The sweeping raids, which began at dawn, targeted property linked to Vaikundarajan, allegedly a key figure in the case, as well as property linked to a prominent sugar mill, though the link between the two is not known.
Searches in Chennai
The Madras High Court’s recent order for a CBI probe has spotlighted “official corruption”, a “potential political nexus, and national security concerns” tied to the “illicit mining” activities.
In Chennai, CBI teams stormed three sites connected to Vaikundarajan. The flagship target was the head office of VV Minerals—a company long embroiled in allegations of “illegal sand mining”—at Pantheon Road, Egmore.
Also read: SC asks ED not to 'unnecessarily harass' TN collectors in illegal sand mining case
Simultaneously, officers searched the residence of Hari and Sugumar, relatives of Vaikundarajan’s who live in different neighbourhoods of Egmore. These raids are part of a CBI effort to unearth evidence of financial misconduct and operational violations in the mining scam that has rocked Tamil Nadu.
Net widens to Thoothukudi
The CBI’s net widened to Thoothukudi, where over 20 locations were raided, including Vaikundarajan’s office and residence in Thisayanvilai and properties in Palayamkottai. The coastal district, a hotspot for beach sand mining, has been under intense scrutiny following reports of “illegal mineral” extraction.
The searches in Thoothukudi, a CBI official said, was to probe the full extent of the illegal business, which involves valuable minerals like monazite with “potential national security implications”.
Broader investigation
Beyond mining, the searched sites included those linked to Dhanlaxmi Srinivasan Sugar Mill, owned by Vaikudarajan’s relatives, CBI sources said. In Tirunelveli, the auditor’s home and the sugar mill’s corporate office also faced searches.
Also read: Tamil Nadu 'illegal' sand mining case: ED attaches more than 200 excavator trucks
While the connection between the mining and sugar mill cases remains unclear, the simultaneous raids suggest a broader investigation into financial impropriety.
The Madras High Court’s February directive to the CBI underlined the gravity of the Rs 5,832-crore scam, citing corruption and a possible political cover-up. The court ordered the agency to investigate the nexus between officials, politicians, and private miners, with 16.04 lakh tonnes of beach sand minerals reportedly transported illegally between 2018 and 2022 despite a ban since 2013.
