Former AIADMK Minister S P Velumani Named as Prime Accused in Chennai Smart City Corruption Case

AIADMK MLA S P Velumani and 11 Chennai Corporation officials face FIR in a corruption case involving storm water drain and bus route road tenders, causing a loss of Rs 26.61 crores to the exchequer in 2018. Out of the 73 tender packages, officials have been accused of pre-fixing 42 tender packages by posting fake applications and creating false competition.


Coimbatore: Former AIADMK minister S P Velumani has been named as the prime accused (A-1) in an FIR filed by the Directorate of Vigilance and Anti-Corruption (DVAC) in connection with a Chennai smart city corruption case. The case involves alleged irregularities in the awarding of tenders for storm water drains and bus route roads, causing a significant loss to the exchequer.

The FIR has been registered against more than 11 Chennai Corporation officials, including former chief engineers, current superintending engineers, and executive engineers. The DVAC has stated that during their investigation into 51 tenders for storm water drains and two tenders for bus route roads, prima facie evidence has been unearthed regarding the awarding of tenders with pecuniary gains for the accused.

According to the DVAC, Chennai Corporation officials colluded with contractors to inflate ready mix concrete (RMC) rates. They allegedly used the rate of river sand when m-sand was actually used for the projects. Payments to contractors were made based on river sand rates, leading to financial irregularities.

Velumani has been accused of giving undue freedom to R Chandrasekhar, founder of KCP Engineering and a youth wing member of AIADMK at that time, to decide on tenders, violating established tender rules. The FIR alleges that Chandrasekhar abused Velumani's official position by occupying Roja Illam, the minister's official residence. This action made officials believe that Chandrasekhar, in criminal conspiracy with Velumani, would be one of the key decision-makers for the tenders in question.

The DVAC investigation has revealed that Rs 26.61 crores of government money has been embezzled due to this collusion. Additionally, three firms have been accused of submitting tenders from the same IP address, raising further suspicions of malpractice.

This case highlights the alleged corruption in the implementation of smart city projects in Chennai during Velumani's tenure as the Minister for Municipal Administration, Water Supply, and Urban Development. The ongoing investigation is expected to uncover more details about the extent of the corruption and the involvement of various officials and contractors in the scheme.

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