DVAC Officers say AIADMK’s Velumani had abused his official position causing a loss to the exchequer of Rs 500 crore in replacing street lights with LED lights during 2015-18. Another minister Vijayabaskar has been accused of indulging in irregularities in issuing an ‘Essentiality Certificate’ to Vels Medical College and Hospital.
The Officials of Directorate of Vigilance and Anti-Corruption (DVAC) sleuths Monday registered a criminal case against former Municipal Administration Minister SP Velumani for his alleged involvement in the allocation of tenders injudiciously to his close associated companies. According to the statement issued by the authorities, Velumani abused his official position causing a loss to the exchequer of Rs 500 crore in replacing the existing street lights with LED lights in rural areas during 2015-18.
The case was filed against Velumani on the allegation that he had abused his official position in awarding tenders injudiciously to his close associated companies causing a loss to the government of approximately Rs 500 crores in replacing the existing street lights with LED lights in rural areas between 2015 and 2018. Along with him, nine more suspects including his associates and the entities who won tenders were also booked in the case.
The suspects of this case violated tender guidelines and allotted tenders mostly to the Benami entities of Velumani. On sample verification of five districts, it is found that they caused a loss of Rs 74 crores to the government. The prima-facto reveals that the cause might have been followed in the other districts to swindle the public money and cause loss to the government. The prima facie material reveals that the suspects and other officials involved in the execution of the scheme and contractors conspired together to obtain wrongful gain from the amount allotted for the scheme said Officials of Directorate of Vigilance and Anti-Corruption (DVAC) after the Raid in SP Velumani residence
Cases Registered against
Former Minister for Rural Development and Panchayat Raj SP Velumani
Managing Director of KCP Engineers Pvt. Ltd. K Chandraprakash
R Chandrasekar, Director of KCP Engineers Pvt. Ltd.,
D Srinivasan Managing Director of ACE Tech Machinery Components India Pvt at Vadavalli in Coimbatore
D Siddharthan, Director of ACE Tech Machinery Components India Pvt. Ltd.,
KU Rajan Proprietor of CR Construction from Coimbatore
CT Radhakrishnan, Proprietor of Sabari Electricals from Ambattur in Chennai,
R Parasuraman Partner of Murugan Electrical Traders from Chennai,
P Vijayakumar Partner of Orient Poles from Chennai
K Manivarman, Proprietor of RKM Electricals from Chennai.
According to the DVAC, it was found that the Essentiality Certificate was issued by the Health and Family Welfare Department to the Vels and Medical College Hospital for commencing a new medical college with an annual intake of 150 MBBS students.
It was noted that based on the direction of the Directorate of Medical Examination, an inspection team had reached the hospital and verified the infrastructural facilities of the college and the minimum requirements for starting the MBBS course and had submitted its report stating that the Vels Medical College fulfilled the norms of the National Medical Commission to start a new medical college.