The Enforcement Directorate (ED) has accused Tamil Nadu Minister KN Nehru of large-scale corruption and money laundering amounting to Rs 365.87 crore, allegedly through bribes collected for the transfer and posting of government officers and engineers.
The Enforcement Directorate (ED) has alleged large-scale corruption and money laundering involving Tamil Nadu Municipal Administration and Water Supply Minister KN Nehru, flagging bribery worth Rs 365.87 crore linked to the transfer and posting of government officers and engineers in a fresh evidence collection.
In the nearly 100-page fresh evidence report shared recently with the Tamil Nadu Director General of Police, the Director of Vigilance and Anti-Corruption, and the Chief Secretary, the federal Central agency has sought the initiation of necessary criminal action by registering a First Information Report (FIR) against KN Nehru.
Accidental Discovery of Evidence
The detailed report prepared by the central agency points towards “bribes ranging from Rs 7 lakh to Rs 1 crore allegedly collected for each posting, with evidence related to around 340 transfer and posting orders recovered from the digital devices of the minister’s close associates”. The evidence was found by the ED accidentally during investigations into a different bank fraud case, in which an FIR was registered by the CBI-ACB, Chennai. The ECIR was later closed and quashed on a technical basis. The report states that the evidence was unearthed during searches conducted in April 2025 across Chennai, Trichy and Coimbatore in connection with the bank fraud probe. However, since substantial evidence related to corruption by KN Nehru was found during the searches, the evidence was transferred to other relevant cases and sent to the DGP, the Director DVAC, and the Chief Secretary for initiation of the necessary criminal action through the registration of an FIR.
Evidence Seized from Minister’s Associates
The evidence, as ED claims in the report, was seized from the phones of KN Nehru’s associates, D Ramesh and Kavi Prasad, as well as from the phone of younger KN Manivannan. As per the ED investigation, these documents were analysed and interlinked and “clearly show multiple instances of bribes collected for transfer and posting of government officers and engineers in Municipal Administration and Water Supply Department (MAWS).”
Details from the ED Report
The agency shared the detailed report under section 66(2) of the Prevention of Money Laundering Act. “This detailed report consisting of all the evidences (about 102 photos of whats app chats, bribe collection confirmations, names of officers, transfer orders found in the phone of privatc persons who are close associates of KN Nehru) shows collection of bribes ranging from Rs 7 lakh to Rs 1 crore (depending upon the post and place of posting) from various officers and engineers by the close associates of Minister KN Nehru. This report provides direct evidence of the collection of bribes in the transfers and postings of officers and engineers of MAWS. Details of about 340 officers and engineers whose transfer and posting orders were found on the phone of the close associates of KN Nehru are also provided. This report also provides direct evidence of money laundering by KN Nehru and his family, as well as close associates in various methods amounting to Rs 365.87 crore,” reads the report.
“These evidences clearly show systematic collection of bribes for transfers and postings of government officers and engineers in MAWS,” the report notes. Investigators found details of officers, negotiated bribe amounts, confirmation messages and copies of posting orders, establishing what the agency describes as direct evidence of corruption.
Alleged Money Laundering Channels
The ED has alleged that the bribe money was laundered through multiple channels, including Rs 223.65 crore through construction and real estate businesses, investments in properties and benami entities, purchases of gold bullion and foreign properties, and expenditure on a luxury lifestyle. The total value of money laundering backed by documentary evidence has been pegged at Rs 365.87 crore, the report says, adding “this figure excludes several high-value transactions still under investigation”.
Transactions Under Further Investigation
In the report, ED says the Rs 365.87 crore figure does not include discussions relating to the hotel purchase for Rs 50 crore purchase of 34 acres of land in the USA, cash transfers to Singapore, purchase of 3.23 acres in the USA for Rs 70 crore, foreign education and extravagant lifestyle expenses, extravagant lifestyle of KN Manivannan- KN Nehru’s younger brother.
The agency has further alleged that bribe proceeds were “routed through hawala networks, both within India and abroad, to conceal money trails”. “High-value assets allegedly acquired by the minister and his family members, including benamidars, were found to be disproportionate to known sources of income. The evidence clearly establishes a case of corruption, cheating and money laundering.”
‘Tip of the Iceberg’: ED Warns of Larger Scam
The ED has cautioned that the evidence currently documented represents “only a small part of a much larger transfer-posting scam spanning multiple districts and departments”. The agency also pointed out that “bribe collections in other ministries and regions were likely higher and carried out through unidentified intermediaries”.
“The evidence clearly makes out a case of corruption, cheating and money laundering,” states the report. “The individuals covered in the search dealt with the collection of bribes only in a few areas. Bribes from government officers of other districts are being collected by unknown individuals, which needs to be investigated. Bribes for the transfer and posting of other ministries are also being collected by unknown persons. The bribes are much larger in quantum, which needs to be investigated,” the report concluded.
Previous ED Alerts on MAWS Corruption
The fresh note is the third one sent by the ED. The agency had earlier sent information regarding corruption and malpractices in the examinations and selection process for Officers and Staff (2024-25, 2025-26) conducted by the department of MAWS, through a note dated October 27, 2025. In the note, ED had provided evidence of bribes ranging from Rs 25 lakh to Rs 35 lakh being collected from each candidate, along with details of about 150 candidates whose information was found on the phones of close associates of KN Nehru. ED also sought an investigation regarding the appointment of about 2,500 candidates.
ED further sent another note on December 3, 2025, regarding manipulation and corruption in MAWS’s government contracts. Evidence related to tender rigging, manipulation and corruption, ranging from 7.5 per cent to 15 per cent in government contracts, was provided. Direct evidence relating to the collection of Rs 1,020 crore as a bribe was also submitted then. (ANI)
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