Found evidence against Minister Nehru's MP-son, brother, claims ED

CHENNAI: The Directorate of Enforcement (ED) on Friday said that the agency had conducted extensive search operations on April 7 at 15 locations across Chennai, Tiruchy and Coimbatore, targeting premises linked to Truedom EPC India and its key personnel.

The raids, executed under the Prevention of Money Laundering Act (PMLA), 2002, stem from a CBI probe into an alleged Rs 30 crore bank fraud involving Indian Overseas Bank (IOB).

During the raids, incriminating documents, digital evidence, and property records were seized, implicating Truedom’s key figures, including N Ravichandran (brother of Minister KN Nehru) and Arun Nehru (Nehru’s son), in orchestrating the fund diversion, a press release from the ED said. The probe also uncovered a deep-rooted corruption network within TN’s Municipal Administration and Water Supply Department (MAWS), headed by KN Nehru.

Evidence points to pre-determined tender commissions, rigged procurement processes, and a nexus involving officials, middlemen, and politically connected individuals. Investigators identified widespread hawala transactions used to channel illicit funds, alongside bribes collected for transfers and postings of MAWS officials.

The ED initiated its investigation following a FIR accusing Truedom of misappropriating loan funds sanctioned for a 100.8 MW windmill project. Investigations revealed Truedom, a shell entity with no prior wind energy experience, was established solely to divert funds.

ED officials disclosed that the loan amount was immediately routed through a network of shell companies with no genuine business operations. After layering, substantial sums were funnelled to True Value Homes and TVH Energy Resources to settle existing liabilities.

“Fraudulent project agreements and paper entities were created to disguise the diversion,” an ED statement noted, emphasising that no repayment efforts were made before IOB declared the loan fraudulent.

The ED has identified properties and assets acquired through proceeds of crime (POC) and is initiating proceedings to attach them under PMLA. “The scale suggests a broader financial-administrative cartel operating across TN,” the agency stated. “Efforts are underway to quantify losses to the public exchequer and trace additional beneficiaries.”

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