The anti-corruption department has been raiding 9 places including SP Velumani's house in Sukunapuram area of Coimbatore, 10 places in Chennai and 26 places like Tambaram, Chengalpattu, Avadi and Trichy since morning in connection with ₹500 crore loss to ex-chequer in Street light buying scam.
In 2015, the then Chief Minister of Tamil Nadu announced in the Legislative Assembly under Rule 110 that 8 lakh old street lights in villages will be replaced with LED lights. On that basis, a contract was entered into to replace the old street lights in the villages with new LED lights.
During the year 2016-2018, LED lights were purchased at an additional price than the then market value, thereby causing additional expenditure to the extent of 500 crore rupees to the government and there was a complaint of malpractice.
Based on this complaint, anti-graft police have registered a case against former minister SP Velumani, his close friend Vadavalli Chandrasekhar, K Chandra Prakash and more than 10 people who are owners of private electrical companies.
Also, anti-bribery police have been raiding 9 places including SP Velumani's house in Sugunapuram area of Coimbatore, 10 places in Chennai and 26 places like Tambaram, Chengalpattu, Avadi and Trichy since morning.
It is to be noted that while the anti-bribery police have already registered two cases against former minister Velumani, a third case has been registered and investigation is underway.