ED raid at Ponmudy’s properties has identified a trail of illegal proceeds
Even as the grilling of TN higher education minister K Ponmudy and his MP son Gautham Sigamani continued for the second day on Tuesday evening, the enforcement directorate had said that proceeds obtained from illegal mining were deposited in benami accounts and were layered through multiple transactions and accounts.
“Eventually, two overseas entities, namely PT Excel Mengindo in Indonesia and Universal Business Ventures FZE in the UAE, were acquired. The Indonesian company, which was shown to have been purchased for a nominal amount of Rs. 41.57 lakh, was later sold for over Rs. 100 Crore in 2022. It is suspected that huge amounts of cash were transferred through hawala and infused in purchase of these overseas entities, ” a note from ED said on Tuesday.
During the search at the premises belonging to the minister and his son, after registering a case under PMLA in connection with the alleged issuance of red sand mining licenses at five locations by Ponmudy, who he was the Minister of Mines at that time, to his son, relatives, and benami holders in the year 2007.
During the search operation, unaccounted cash amounting to Rs. 81.7 lakh was seized, along with unexplained foreign currency primarily in British pounds equivalent to approximately Rs.13 lakhs from the residence of Ponmudy. Furthermore, an amount of Rs. 41.9 crore, identified as direct proceeds of crime, was freezed under Section 17 (1A) of PMLA as it was held in the form of a Fixed Deposit.
In order to mislead the probe, a claim that the cash belonged to a family-owned hospital was made, and an attempt to falsify accounting records to introduce cash was detected by ED and prevented. A corroborating statement attesting the above facts was obtained from one concerned person.
“Thus, there is no plausible explanation for this unexplained cash seized from the residence of Ponmudy, ” ED said.