ED attaches assets in mining-linked PMLA case against TN minister K Ponmudy, son

The money laundering case related to alleged illegal red earth mining stems from a state police FIR.

The agency said it has issued a provisional order under the Prevention of Money Laundering Act (PMLA) for attaching assets of Rs 14.21 crore.

During 2007-2010, when Ponmudy was the minister of mines, he “managed” to allot five licences in the names of Dr P Gautham Sigamani, Sigmani’s brother-in-law K S Rajamahendran, and Jayachandran, who “admitted” to have had acted on behalf of Sigamani in the quarrying of red earth in ‘patta’ lands, the agency said in a statement.

“Red earth was extracted illegally beyond the permitted limits to the tune of Rs 25.7 crore and the sale proceeds were invested in the overseas entity,” it alleged.