09.12.

2017

To,

His Excellency
Shri Banwarilal Purohit,
The Governor of Tamil Nadu,
Raj Bhavan,
Chennai-600 022.

Your Excellency,

Sub:
Misuse of authority and indulgence in wholesale corruption by the chief
ministers of Tamil Nadu and their Ministerial Colleagues demand for
explanation calling for the constitution of Enquiry Commission to go into
the impetuous misdeeds Reg

Corruption is a malevolent cancer corroding the moral fabric of democracy
by debasing the very faith with which the society is built. It has a tendency
to obliterate the creative spirit and crush innovativeness. Corruption chokes
inflow of funds for developmental projects with a telling effect on
employment. It is the considered opinion of all those righteous
administrators that corruption will burn the light out of the opportunities of
an entire generation.

Corruption is a malfeasance that will destroy society posing a threat to its

safety and security, a stumbling block for the prospects of socio- economic
and political development that is in essence against a vibrant democracy.
Co-hoisted by those in the government it is a blotch in public welfare that
has invited severe public wrath and torment to which the people are forced
to put up with.

The state of Tamil Nadu has achieved the dubious distinction of topping the
list. The only happening thing in the government is corruption. There are
Lok Ayuktha in 19 states and Delhi Union Territory and the Central
Government has enacted the Right of Access to Public Service Act which

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also being implemented in 19 states and Delhi Union Territory. The very fact
that both these laws are conspicuous by their absence in Tamil Nadu is
evident enough to display the Tamil Nadu Governments lack of will and
courage to promulgate them to pave way for transparent and good
governance.

Corruption and mal-administration have joined hands in Tamilnadu. It is

enshrined in the very definition of human rights to obtain good governance
through transparent administration. The office of the Governor should
ensure rule of law in strict adherence to constitutional principles in letter
and spirit.

Efficiency can prosper to boost economic growth only if it is steered by clean

administration and it is possible only when it is devoid of corruption. The
right to dignified life and the rest of the rights can be realized by the
citizenry and it is very much dependent on a corruption less governance.

Corruption has spread its tentacles far and wide after Ms. Jayalalitha took
over the reins in 2011. Rapacious plundering of natural resources went
unchecked. During Ms. Jayalalithas imprisonment in Bangalore in the
disproportionate wealth case, Mr. O. Pannerselvams regime took over
continuing corruption unabated bringing administration to a grinding halt.
Demanding an enquiry commission on 18 corruption charges against Ms.
Jayalalitha and Mr. O. Pannerselvam, Pattali Makkal Katchi(PMK) submitted
a 209 page memorandum on Feb 17, 2015 to the then Governor HE
Rosaiah.

Though sufficient proofs have been submitted, the Governors office has not
initiated any action in this regard. A case filed by PMK is pending in the
High Court of Madras in this regard. Emerging victorious in 2016 elections,
the corruption seems never ending. After assuming office former Chief
Minister Ms Jayalalitha took ill and passed away leaving the mantle to Mr.
O. Pannerselvam in whose regime corruption seems to be on the rise. With
actionable proof, PMK accuses the ministers and officers in Tamil Nadu
government of the following corruption charges:

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A. Plundering of Natural Resources
1. Rs 7.10 lakh crore river sand smuggling
River sand quarrying in Tamil Nadu not only destroys the
environment by making the land barren, but also stings the
economic wealth of the state. None would believe that the
government earned only Rs 86.33 crore revenue from the 48 sand
quarries last year. Surprisingly, revenue from the sale has
dwindled in the last six years. Rs 188.03 crore was earned in the
year 2011-12 when ADMK came to power. It declined to Rs 188
crore in the next year and further nosedived Rs 133.37 crore, Rs
126.02 crore and Rs 91.02 crore in the next three years to touch
down its nadir Rs 86.33 crore in the current year. What else could
be the reason except illegal quarrying?
Though the State took over sand mining in 2003-04, people
proximal to powers that be like Sekhar Reddy, Arumugasamy and
KC Palanisamy rule the roost. Contrary to the sanctioned depths,
they excavate from 50-60 ft below. Only 5% of the excavation is
brought into the books. For instance, the account shows that only
8300 truck loads are quarried and each is sold at Rs 800 per load.
Conversely, close to one lakh trucks are in operation. A reasonable
estimate of one load per truck returns staggering 1 lakh truckloads
of sand per day. Each truck is to be loaded two units of sand but
invariably illegally upto four units are loaded. Even a conservative
estimate of 3 units per load will arrive at three lakh units per day.
Rs. 800 is the government fixed rate per unit and it is consistently
sold at higher price in the market, i.e. Rs 36,000 in Chennai, Rs
50,000 in Karnataka, Rs 55,000 in Kerala per 2 units. On
27.11.2013 in Old Seevaram in Kanchipuram district, the
confiscated hoarded sand was auctioned that fetched up to Rs
6100 per unit. If this is taken into our estimate, then government
should have earned Rs 183 crore revenue. At an average of 300

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 days of quarrying per annum, Rs 54,900 crore should have been
earned amounting to an astronomical Rs 7, 13,900 crores in the
last 13 years. But a paltry Rs 1,700 crores was earned, having lost
the rest in to the bellies of insatiable corruption monsters.
Illegal sand mining that cripples our economy needs to be
thoroughly investigated.
2. Garnet mining scandal that pales 2G and coal scandals to
insignificance
It wont be an exaggeration that the monazite mining scandal
unleashed in the southern districts of Tamil Nadu surpasses Rs
1.76 lakh crores 2G scandal and Rs 1.86 lakh crores coal scandal,
proof of which is available in the documents submitted in the
parliament.
The report tabled by the Atomic Minerals Directorate for
Exploration and Research (AMDER) functioning under the
Department of Nuclear Energy in the Parliament in 2012 revealed
that there is 10.70 million tons of monazite minerals available in
the coastal area. The same directorate about a decade ago has
declared the availability in the Indian coastal areas of about
12.8mton monazite. From this it is evident that in the intervening
period, 2.1m ton monazite or 2, 35,000 ton thorium should have
been excavated. Though the value of the mineral is priceless, a
minimum estimated value is around a staggering Rs 60 lakh
crores. In this plundering of Rs 60 lakh crore, the central
government report says that 75% had happened in the southern
districts of Tamil Nadu and in the neighboring Kerala coast. All the
details pertaining to this scandal are available with our earlier
report submitted to the governor.
After the persistent appeal of PMK, mineral mining was brought
into the enquiry commission under Mr. Gagandeep Singh Bedi IAS.
The two reports containing the findings of the commission is yet to
be released. However, there is evidence for 90 lakh ton minerals

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mined from 575 acres in Tuticorin, Kanyakumari and Tirunelveli
districts.
Senior counsel Mr V. Suresh, appointed to assist the court as
amicus curie in the case relating to garnet mining scandal, filed a
report to the High Court of Madras in great detail. In the decade
long period during 2007 to 2016, a single company has mined 3.94
crore ton. VV Minerals has informed AMDER that it has mined 99
lakh tons of minerals during the said period. Among the ores,
monazite ore is available in the ratio of only 0.05%, this will
amount to manufacturing 5876.60 tons as per the estimated of
AMDER. But according to the information filed by VV Minerals,
nearly 80,735.05 tons of monazite tailings were found. As monazite
tailings contain 29% monazite, 23,461.70 tons of monazite could
be manufactured. To manufacture 23,461.70 tons of ore or
80,735.05 tons of monazite tailings, anywhere between 4.69 crore
to 4.93 crore tones of monazite mineral is required. But the sum
total of all the mineral mining has yielded only 1.51 tons of
minerals. The data about the coastal mining contains information
which is self-contradictory according to the report filed in the High
Court by the Senior Counsel.
As per the data given above, it can safely be concluded that VV
Minerals that holds license to 34 quarries, has single handedly
plundered 3.94 crore tons of minerals through illegal mining.
Likewise, if other quarries have indulged in such illegal mining,
PMK estimates in the last ten years alone, at least 7.29 crore tons
of minerals being excavated. This would not have been possible
without the unholy collusion of the TN government.
The 2G scandal and the coal mining allotment scandal that shook
the entire nation, will be easily surpassed by the mineral mining
scam, feels the senior counsel that impels a detailed enquiry.

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3. Mineral mining scandal in violation of the Tamil Nadu ban
Upon the insistence of PMK to constitute an enquiry commission to
go into the illegal mining, Government secretary Gagandeep Singh
was appointed to go into the mining scam in Tuticorin. Accordingly
the commission conducted enquiry in Tuticorin and filed a report
on 17.09.2013 with the then chief minister Ms. Jayalalitha.
From that day onwards, mineral mining quarries were sealed and
export was banned. But till date, illegal mining and exporting
continues unchecked.
From the date of ban till 30.05.2014, in the intervening nine
months period, VV Minerals was allowed to export 4.45 lakh tons
by Tamil Nadu government and consequently has suffered a
humongous loss of Rs one lakh crores. In this regard a PIL was
filed by Mr. G. Victor Rajamanickam who withdrew from the case
when the High Court of Madras took up the case directly under its
purview. The High court has ordered for a multi department
enquiry on 11.01.2017 to go into the continuation of illegal
quarrying when the ban order is in vogue, the Tamil Nadu
government issued GO appointing TIDCO chairperson Mr.
Sathyabrata Sahu with three district collectors as members in the
special commission. This special commission is conducting enquiry
in the three districts of Tuticorin, Tirunelveli and Kanyakumari
which is nearing completion. It has found that 2 crore tons of
mineral ores are being illegally hoarded. Very soon, Mr.
Sathyabrata Sahu commission will file the report. The worth of the
illegally held mineral is estimated at an astronomic Rs 5 lakh
crores. As this might have happened with active connivance of the
government, for which enquiry has to be undertaken.

4. Mineral mining a threat to national security

Though the State Government has no locus standi to issue license
to mine monazite which is used to prepare thorium used in nuclear
reactors, the fact that the Tamil Nadu Government has issued

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 licenses with impunity to private firms raises serious questions
about the issue of national security. Till 1998, mineral mining was
banned in India since it was intertwined with national security. It
was the prerogative of the Central Government alone to license in
this matter. Laws were amended and garnet, limonite and rutile
mining by private players were permitted with stringent
supervision. But monazite was still banned for mining. The 1962
nuclear law unequivocally states that AMDER license is
mandatory. Every three months, the monazite ore has to be
deposited in Hyderabad. As per the 1957 Mines and Minerals
[Regulation and Promotion] Act, the power to license mining of
minerals is vested only with the central government and not with
the state government. Unmindful of the illegality, as many as 62
monazite mining license were issued to private quarries by the
geology and mining department of the Tamil Nadu government.
Monazite export by the private players can be construed as an anti
national act against the security of the country. Enquiry should be
conducted to ascertain whether these companies have invested in
foreign soil. Monazite export is taking place at least for the past two
decades. A detailed commission of enquiry PMK demands should
be constituted to analyze the security threat perception.

5. Disregarded granite scam

On 17.02.2015 PMK submitted a complaint to the then governor
HE Rosaiah that in Madurai, Pudukkotai, Krishnagiri and Trichy
districts of Tamil Nadu, illegal granite quarrying has touched a
mind boggling Rs 5 lakh crores. The news about granite quarrying
had not been published yet. The enquiry commission headed by
Mr. Sagayam IAS started its deliberations on 03.12.2014 in
Madurai. After a year of inquiry, on 23.11.2015 it submitted its
findings in Madras High Court. Only after that came several news
and information in this regard. Though official report is yet to be
released, PMK has captured the crux of the matter.

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In Madurai and Theni districts, PRP Exports has usurped 20
thousand acres of land by arm twisting and threatening the owners
with solitary ulterior motive of illegal quarrying. Land documents
were forged for this purpose. These are in gross violation of the
1961 Land Reforms [Land Ceiling Act]. We wish to bring to your
notice that the Sagayam Commission has noted that Tamil Nadu
government officers were hand in glove in this usurious operation.
In Madurai district alone, illegal granite quarrying has resulted in
the loss of Rs 62,890.91 crores to the exchequer, Rs 5,507.53
crores loss to TAMIN, a state owned company, by way of fines to be
collected from the private firms to the tune of Rs 34,304.13 crores,
by way of fine to be collected from TAMIN Rs 9,978.99 crores
altogether totaling a whopping Rs 1, 12,681.56 crores of revenue
loss, as estimated by Sagayam commission. Though this is only an
estimated value, the real worth would be much higher and hence
an enquiry is demanded in the Sagayam committee report.
Water bodies are encroached and in some places siltation caused it
to be at ground level. The revenue and public works department
officials have not been vigilant enough to check this process.
Without initiating any action on these erring quarries, they were
mute spectators to the loot, emboldening the quarries and likes of
a school dropout P R Palanichamy, owner of PRP Minerals who in
an unholy nexus with the corrupt government officialdom with
whose active connivance raised an empire ground up.
The ministers could have halted the loot had they had some
kindness left. They didnt, which goes to show that the entire
government machinery is in a state of paralytic slumber. Political
influence is a key factor in this whole process.
Sagayam Commission has recommended a multi departmental
special investigation team to go into the scam grandeur.
Sagayam Commission has gone into the granite smuggling that
occurred in Madurai only. Krishnagiri witnessed mining at least

8
 ten times more in magnitude than Madurai. Trichy and Pudukottai
districts have also suffered illegal granite mining and smuggling.
We appeal to His Excellency the Governor to order a state wide
enquiry to unearth the true extent of damages caused by
indiscriminate granite mining and smuggling.

B. Corruption in Higher Education

6. Appointments of Vice Chancellors and faculty members
Universities that are portals of higher learning concerned about
education and economic development striving towards scientific
advancement have turned into a fountainhead of corruption.
Doyens like AL Mudaliar and ND Sundaravadivelu that have
decorated the helm of Tamil Nadu varsities earning respect and
awe from those in power, have come to be occupied by those who
neither possess the acumen nor the leadership to steer the
administration in the path of glory. Corruption has brought them
to the mantle. Some are imprisoned in the disproportionate wealth
case and also get shamelessly called for to join politics bringing
disrepute to the position they occupy.
After our representation to the then governor in 2015, Vice
Chancellors to University of Madras, Madurai Kamaraj University,
Bharathiar University, Mananonmaniam Sundaranar University,
Mother Teresa University, Thiruvalluvar University, Tamil Nadu
Open University, TN Education University, Fisheries University and
Medical University were appointed. It is alleged that at least
anywhere between Rs 3 crore to 20 crore must have changed
hands in each of those appointments.
Currently, PP Chelladurai, Vice Chancellor of Madurai Kamaraj
University is not qualified, as revealed in the sworn affidavit filed in
Madurai High Court by the search committee panel members
Harish Mehta and Ramakrishnan. They were forced to accept his
appointment by the chairman of the search panel Murugadoss. We
would like to draw your attention to the fact that while questioning

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 health minister Vijay Bhaskar in the medical scandal,
Geethalakshmi, VC of Medical University was also summoned for a
detailed interrogation.
In the 13 universities in the department of higher education, 800
appointments have been made in which Rs 30 lakhs for Assistant
Professor, Rs 40 lakh for Associate Professor and Rs 55 lakh for
Professor have been received as bribe amounting to a staggering Rs
320 crores. An enquiry committee should be constituted to go into
the allegation in the appointment of Vice Chancellors and faculty
members in universities.
7. Universities construction scandal
Rs 400 crore worth construction works have been carried out in
the 13 universities during the past two years. In the year 2015-16
alone, Rs 91.72 crores worth construction works were completed
only in Anna University. A huge racket is operating in the award of
construction contract and it is alleged that large sums have been
exchanged. In stationary and equipment purchase in universities,
corruption has reared its ugly head aswell. A detailed enquiry is
demanded to unearth the extent of corruption in universities.
C. School education scam
8. Private School Fees Frauds
Corruption in school education department is nothing less when
compared to the higher education. A price tag of Rs 10 lakh is
marked to accord approval to private matriculation schools, Rs 4
lakh for renewal of approval and NOC to change over to CBSE will
burn the school cash flow to the tune of Rs 40 lakhs. In the past
five years, more than 150 schools have switched over to CBSE
having duly paid the price.
The private schools indulged in an unprecedented fee collection.
There was a manifold increase in the fee collected than admissible.
To facilitate the whole process, Justice Singaravelu withdrew from
the school fee fixing committee in 2015. The Government slept over
the replacement conveniently for 15 months and appointed Justice

10
 TV Masilamani on 22.03.2017. As it didnt fix the fees, school
managements fleeced the students. Crores of money is alleged to
have been paid those connected in the government to turn a
Nelsons eye to the fee issue. A detailed enquiry will have to be
conducted to probe into this allegation.
9. Appointment order and transfer racket
Unlike appointing faculty members in universities, school teachers
are recruited through Teacher Recruitment Board (TRB) after a
written test and hence no scope for direct corruption. However,
when there is a vacancy for an aided post, it is alleged that Rs 20
lakhs should be doled out and crores have been collected in the
past two years. There is no possibility for collection during transfer
counselling but when transfers are ordered for administrative
reasons, up to Rs 5 lakhs is alleged to have been collected for every
transfer and in the past two years, there were close to 2000
transfers effected in that category.
A detailed enquiry will have to be conducted to probe into this
allegation.
D. Scandals in Electricity Department
10. Power purchase from private companies behemothic Rs
52,000 crores loss
Procuring solar and thermal power to TNEB has seen large scale
fraud. In 17.02.2015, PMK has submitted a report on electricity
procurement upto 2014 but action is yet to be taken in this regard.
To buy 3330 MW electricity from 11 firms contracts were signed in
2015 for the next 15 years. Per unit cost in the tender is fixed
between Rs 4.91 to 9.85. As Rs4.91 is the lowest, agreement was
signed for 3330 MW purchase for EB.
Athena Energy Venture (P) Ltd supplies at Rs 3.32 in UP and Power
Trading Corporation supplies for Rs 3.44 in AP. Buying at Rs 1.50
more per unit, government will lose a mammoth Rs 45,000 crores.
TNEB has signed for procuring 947 MW contrary to the rule that
limits purchase of renewable energy to 0.05%. Accordingly, in

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 2016 only 20 MW of solar power could be bought. Ten times hike
has been effected suo motu by TNEB to 200 MW. Unmindful of
anything above, 947 MW power was purchased including 648 MW
from Adani committing a blatant fraud.
Price for Adani Corporation was fixed at Rs 7.01 only if it started
generation within 11.09.2015 failing which the next year rate of Rs
5.86 would have come into force. By agreeing to pay Rs 1.15 per
unit, more for 25 years the exchequer would lose Rs 7000 crores
and it would entail a colossal loss of 52,000 crores to government.
A detailed enquiry will have to be conducted to probe into this
allegation.
11. Selection of TNEB Engineers Recruitment scandal
On 31.01.2017 Anna University conducted the written test in all
fairness for the selection of Asst Engineers to the 375 posts in
TNEB and results were announced. The personal interview to the
successful candidates was to be held during 13 18, March, 2017
in Vijay Park Hotel in Arumbakkam, Chennai. Suspecting
foulplay, PMK demanded that the interview be held in TNEB Head
Quarters. But paying no heed to the appeal TNEB held the
interview in a star hotel, Kalyan Hometel in Vandalur. Deals were
brokered and those who paid got higher marks.A detailed enquiry
will have to be conducted to probe into this allegation.

E. Rest of the scandals

12. Rs 303 crore medical insurance fraud
To raise the premium of CM comprehensive medical insurance
scheme benefitting one crore families is operated through United
India Corporation, wholescale corruption and manipulation have
happened.

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 A premium of Rs 505 crore at Rs 437 per family was paid. In
December last, to extend the scheme, tenders were called and
project director Mr. Dharmesh Ahmad of Rural Health Scheme, in
spite of his refusal, were pressurized by the Chief Minister Mr. O
Panneerselvam, to increase it to Rs 1000 per family. After repeated
attempts, it was raised to Rs 699 per family in spite of the stout
refusal by the project director. The comprehensive insurance
scheme premium was fixed at Rs 808 crore and agreement signed
on 11.01.2017. What used to be released in instalments was forced
to be settled in single payment under duress.The scheme is not
directly implemented by United India Insurance and a huge sum of
Rs 240 crore is alleged to have been paid as kickbacks the reason
for hike in the premium. The raise has incurred a mammoth loss of
Rs 303 crore to the coffers.
13. Gutka Scam
Though a ban was effected on the sale of gutka supari in TN way
back since May 2013, a no-holds-barred sale continues throughout
the state running to underhand dealings entered with ministry
officials, police and other agencies.
In a raid on July 08, 2016 in the MDM Gutka Co. in Sengundram
(Redhills), Chennai incriminating documents were confiscated.
Details of Rs 39.91 crore transfer as kickbacks to health minister C
Vijaya Bhaskar, two senior Police officers and health ministry
officials were found. Evidences submitted by IT officials were
handover to the then Chief Secretary Rama Mohana Rao and Police
DGP Ashok Kumar for further action. So far, no action has been
initiated against them and the IT department evidences were
conveniently lost. Though DVAC is conducting an enquiry as per
High Court order as bigwigs from ministers and top brasses in the
police are involved, there is no guarantee that the truth will see the
light of day. A detailed enquiry commission headed by a High Court
Judge will have to be constituted to probe into this allegation.

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14. Walkie-Talki Procurement Scandal
There has been whole scale corruption in the procurement of
walkie talkie sets to the police department. An allotment of Rs
47.56 crore was earmarked for modernizing the police force in
2017-18 to obtain 10,000 walkie talkie devices. On the contrary,
agreement was made for Rs 83.45 crore to purchase 4,000 walkie
talkie sets, which is per se violation on two counts: it is higher than
the allotted budget and number of devices ordered is lesser than
planned.
The unit price of Rs 47,560 was fixed for the purchase of 10,000
sets but the price has quadrupled at Rs 2.08 lakhs. If they go
ahead with the purchase, it will incur the state exchequer loss of
Rs 161.07 crore.
The tender transparency in the purchase was not adhered to while
deciding the purchase. When the tender was called for to purchase
handsets, only one firm applied. The quote will be competitive only
if there are multiple vendors involved. If it is single vendor tender,
then it has to be cancelled and new quotes should have been called
for. But the single vendor without qualification received the
contract from the police department. Beyond the procedural lapses
and corruption, national security is also intertwined in this issue.
A comprehensive enquiry will have to be conducted to probe into
this allegation.
15. Tar Procurement Scam by the Public Work Department
By giving more than the market price in the procurement of Tar for
laying roads, the Highways Department of the state caused loss to
the tune of Rs 1000 crores. In the state, annually about 4000 kms
of roads are laid for which four lakh tons are procured. The tar
price per ton peaked Rs 41,360 in 2014 hence this formed the base
price for fixing the rate contract. Alas, the price dwindled to Rs
30,260 in 2015 and tumbled further to Rs 23,146 in 2016. Hence,
as per rules the rate contract for the year should have been at
those fallen prices. But contract received rate was fixed based on

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 the 2014 base price. As per procedure, the subsequent year,
contract should have been revised downwards and the difference
recovered from the vendor. Nothing of any of these happened. The
consequent loss to the exchequer is estimated at a scary Rs 1000
crore. Since, The Highways Department is under the aegis of
Edappadi Palaniswamy, the present Chief Minister, for the last 6.5
years, the government is trying to brush the tar issue under the
carpet. To punish those guilty in this scam an enquiry commission
needs to be constituted.
16. Money received by ministers from Sekhar Reddy
A lot of incriminating documents have been confiscated by the IT
sleuths during the raid in Sekhar Reddys residence as part of the
sand smuggling case investigation.A jotting in one of the
documents indicates that a little over Rs 400 crore was disbursed
to legislators and ministers. The IT department submitted the
details to the Chief Secretary Girija Vaidyanathan for action
against those mentioned in the list including tainted ministers and
legislators, officers and PAs to ministers with an explicit
recommendation to order DVAC enquiry against all those involved.
It is reliably learnt that the list includes the CM Edapadi
Palanisamy and hence it is but natural that no action was initiated
against those names that figured in the Sekhar Reddys list. The
same Sekhar Reddy documents were the precursor to the raids in
the houses of Minister Vijaya Bhaskar and Chief Secretary Rama
Mohana Rao. But the investigation left Chief Minister Edapadi
Palanisamy untouched. Those involved in allegations and accused
of money laundering should not continue. Those named in IT
including the CM and other ministers should be subject of enquiry
commission. Till the enquiry is over, they shall not serve in the
office.
17. Cable TV subterfuge
Though started in the year 2007 to provide entertainment at
reduced prices, the TN Arasu cable TV picked up momentum in

15
 2011 only. The rate was fixed at Rs 70 per connection out of which
Rs 20 goes to the government and the remaining is the retainer
fees for the cable TV operator. Using this subterfuge the head and
CEO Arasu cable TV and others have colluded to swindle crores of
money. In TN there are 1.5 crore connections to Arasu cable TV but
in reply to the case filed by Makkal TV, they have disclosed 50 lakh
connections only. Where they should be collecting Rs 70 from the
subscriber, they demanded Rs 150. Even for an estimation sake, if
they collect Rs 120, the unaccounted one crore connection yield a
sizeable Rs 120 crore and the accounted 50 lakh connection yield
another Rs 25 crore additional unaccounted money resulting in Rs
145 crore per month or a whopping Rs 1,740 crore hoarded money
distributed among the Chairman, Managing Director of Arasu
Cable TV Corporation and the Information and Publicity Minister,
ruling party members among themselves. At another level, to
transmit in primary frequency huge sums are transacted till date.
Money accrued from broadcasting local channels unaccounted,
corruption in procurement of broadcast equipment altogether may
easily touch a mammoth figure of Rs 2000 crore. In the past six
years cable TV scam alone may cross a gargantuan Rs 12,000
crores.
Recently TamilNadu Arasu Cable TV Corporation swindled a crores
of money in the process of procurement of Set-top boxes, more over
they also looted huge amount of money by selling the set-top boxes
to common their subscribers, which otherwise has to be delivered
at free of cost. To unearth the extent of loss to the government and
bring to books those guilty in the cable TV scam, an enquiry
commission needs to be constituted.

18. TNPSC Group I Exam scandal

On Nov 08, 2015 Group I exams was conducted to fill 19 sub
collector, 26 deputy collector, 21 Asst Commercial Tax Officer, 8
deputy registrar posts. On July 29 and 30, those who cleared the

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 written exams were called for interview. Even as the chairman of
TNPSC Mr. Arulmozhi proceeded on leave on 12th May, out of the
blues came the results. Like hundred flowers blooming together
sprung allegations from all corners from swapping of answer books
to various other irregularities. While the High Court of Madras
received petitions for constituting enquiry commission in a hurried
fashion, on 11 08 2017 results were declared and orders issued. It
is alleged that the one private Study center in west CIT Nagar
indulged in the whole scale rigging of results. The fact that out of
74 successful candidates, 65 came through this study centre is
enough proof to demonstrate its guilefulness. This is not a one-off
situation that occurred at random. Even in 2016, out of the 79
selected for Group I service, 70 were through this centre. The
previous year also saw the same phenomenon being enacted.
It is not simply possible for a study centre to train its candidates
and achieve 85 90% success rate consistently without partnering
with stained officials working in tandem from the inside. It is
reliably learnt that up to Rs one crore was collected to make each
one of the successful candidates a Group I officer. This calls for a
thorough enquiry into the whole process of the examination,
evaluation and selection by a High Court Justice.
19. TNPSC Members appointment scandal
Right from Junior Assistant to Deputy Collector, TNPSC is the
appointing authority in which membersappointment is always
shrouded in a veil of secrecy. There are 14 members headed by a
chairperson. Up to the last January 31st status, there were 11
vacancies on the board. As announcement to the election to state
legislature was round the corner, 11 members were hurriedly
appointed before 31 01 2016. Crores of money was received in
kickbacks. PMK moved the high court. In its judgement on 22 12
2016, the bench headed by Justice Sanjay Kishan Kaul cancelled
appointment of all the 11 members which was later confirmed by
the Supreme Court. But out of the 11 members disqualified by

17
 both High Court and the Supreme Court, five members were
reappointed on 20.04.2017, after indulging in behind-the-scene-
activities. To punish those guilty in this scam an enquiry
commission needs to be constituted.
20. Industries Department Opprobrium
At times when AP, Karnataka and Telangana states could attract
and heap industrial investments, investors are reluctant to select
Tamil Nadu. It is because, ubiquity spread of corruption tentacles.
An Economic Times interview published in June 2015 by an
industrialist regarding the investors suffering due to corruption is
given below:
I started a small industry at an investment of Rs one crore. When
production was about to commence, came a notice from a
government department that stated the that certain license
requirement needs to be fulfilled and submitted within 10 days to
be able to start production failing which the company may be
sealed. When I met the officer, I was directed to meet the minister.
In order to issue the license, he demanded Rs 40 lakhs. I
negotiated it and reduced by half. Considering that my investment
is Rs one crore, a fifth of that amount was big.
Since ADMK came to power in 2011, demanding to dole out 30
40% as kickbacks from investors and driving them to neighboring
AP and Telangana have become a routine affair. Demanding
usurious bribes from investors is the primary reason for decrease
in industrial investments. Even foreign companies are not spared
in this phenomenon. South Korean KIA motors and Syntel of USA
moved to AP and neighboring states due to this issue. A
commission of enquiry should probe into this scandal.

21. Power - tiller hustling in the department of agriculture.

In the process of modernizing agriculture, agricultural implements
are distributed at subsidized rates to farmers. As there is a high

18
 demand for power tillers in the place of plows, under the national
agricultural schemes with central assistance and with a 40%
subsidy, power tillers are supplied. A standard Indian make would
cost Rs 1.65 lakh for which Rs 66,000 is subsidized. All that the
farmers get are inferior Chinese tillers. Though the price is fixed at
Rs 1.56 lakh and Rs 1.61 lakh, their market value is a mere Rs
46,000, but they are supplied at the cost of Rs 1.61 lakh under
this scheme. Farmers feel that inferior tillers are dumped on them
at the cost higher ranging from Rs 1.01 to Rs 1.15 lakh. The
farmers to enjoy the benefit of Rs 66,000 subsidy end up paying an
exorbitant amount out of their poor pockets. Though the subsidy
allotted to this scheme is only Rs 31.60 crore, the over pricing
leads both the government and the beneficiaries to lose Rs 44
crore. For each of the power tiller distributed, Agri minister Durai
Kannan grows richer by Rs 95,000 amounting to Rs 38 crore. A
commission of enquiry should probe into this scandal.
22. Noon Meal Scheme Workers appointment scam
In order to implement the nutritious noon meal scheme in the
state, 1300 in Kanchipuram, 997 in Cuddalore, altogether
amounting to more than 17,000 workers including noon meal
organizers, cooks and cooking assistants were appointed. As per
procedure, in the presence of BDO, Deputy Director-Panchayat and
Deputy Director Panchayat [Audit] in the local block development
office, personal interview will have to be conducted and selection
should be based on compassionate ground. Calling the applicants,
and after a namesake interview, only the names recommended by
the local ADMK functionaries were appointed. In the process those
widows, single women and destitute in penury who have applied
were left in lurch. Allegations have surfaced that noon meal
organizers commanded Rs 3 lakh; cook went for Rs 1.5 lakh and
cooking assistant cost Rs one lakh for posting. The above noon
meal scheme appointments should be thoroughly put to public
scrutiny and enquiry should be held.

19
 23. Corruption in CDMA:
It has become a informal norm and open secret that common
public has to pay huge sum of bribe to officials in CMDA and
Chennai Corporation to get approvals and clearances for the
purpose of the construction of new buildings. To construct a new
home with in Chennai one has to pay a huge sum of one lakh
rupees as bribe. For multi storey apartments, builders and public
are compelled to pay a bribe of 70 to 100 Rs per square feet to get
approvals and clearances. Presently once the concerned
department functions under the Deputy Chief Minister Mr. O.
Paneer Selvam of the present Government, it has become
compulsory to bribe to get approval and clearance for the
construction of new building. It has been alleged that corruption
amounting to a huge sum of Rs 25,000 crore taken place from the
year 2015. If this situation continues then tragic events like that of
moulivakkam building collapse causing 61 deaths will continue to
happen. The above corrupt practices should be thoroughly put to
public scrutiny and enquiry should be held.

24. Corruption in Recruitment of Asst. Professor in TNUVAS

More than any other Veterinary University in India, Tamilnadu
Veterinary and Animal Science University present in Tamilnadu is
the most corrupt one. VC Mr Thilagar, whose tenure ends
tomorrow (10.12.2017), administrated the university, in an
authoritarian manner, in violation of each every rule in the book.
In the month of May this year, recruitment to the post of 49
Assistant Professor was held in corrupt manner. Meritorious
candidates were rejected, while candidates without necessary
qualifications were selected, through corrupt means, i.e., it seems
for each vacancy Rs. 30 lakhs was paid as bribe. Further there
were allegations that lot of irregularities corruption took place in
the issuing contracts for constructing building in the university. It
is also understood through various reports that corrupt practices

20
 took place in matters relating promotions and extension of tenure
to Executive Engineers (Estate Officers). A case in pending in high
Court of Madras with this regard against the V C Mr. THilagar. It is
learnt that he, citing a university function to be held in the next
month, seeks illegal extension of 6 months of service. A
commission of enquiry should be ordered by the Governor to probe
into this scandal.
It would be pertinent to mention here and invite your attention to
the old charges raised by us and presented to the then Governor K
Rosaih through a memorandum dated Feb 17, 2015 for the purpose of
understanding the magnitude of the corruption during 2011-2015
tenure of the AIADMK regime. For the purpose of your Excellencys
perusal the previous corruption charges against the AIADMK regime
between 2011-2015 is as follows:

Previous Charges raised by PMK through a memorandum date

17.02.2015

A. Loot of Natural Resources

Charge No.1: Corruption in granite mining

Granite is one of the Himalayan source of corruption in Tamil

Nadu, as evidenced by a report dated 19.05.2012 made by a
serving I.A.S. officer Mr. U. Sagayam. In his letter, the then
Collector of Madurai District, has stated that Government
poramboke lands, public paths, Panchayat lands, ponds and
irrigation channels in Melur Taluk have been encroached by some
influential people in granite mining industry and has requested to
initiate an urgent action by Government to curtail the illegal
mining, to gain more revenue to Government. The report reflects
that the Government had lost nearly Rs. 16,338 Crores and that
there was a requirement for instituting a special Commission of
Inquiry to look into the same. In light of the refusal of the

21
Government to constitute a Commission, the High Court of Madras
gave a direction as a first step quarries in Madurai District are to
be investigated. Indiscriminately many Granite Hillocks have been
mined including the heritage sites such as Jain Hills and the place
where the Pandavas are believed to have stayed. In light of this
investigation being confined only to Madurai it is possible that the
extent of corruption and the amount of black money generated
would be much higher in adjoining districts Tiruchy, Pudukottai
and other potential granite places. The total loss to the exchequer
is likely to reach more than Rs.5 Lakh Crores. The hesitation
shown by Government and the situation wherein the High Court
was forced to enter and order for an investigation by Sagayam
himself, and the latest attitude to render support to the Legal
Commissioner shows the collusion of ministers and higher officials
in this episode and it requires a deeper and detailed enquiry to
bring out the true facts in the granite mining sector.

Charge No 2: Illegal mining of coastal mineral sand in full

collusion with government departments/agencies

Corruption is the enemy of the land, said the Supreme Court in

an order some weeks ago. The enemy appears to be embedded deep
within the state government of Tamil Nadu and thriving there. It
has been indulged in by the Geology and Mining Department of the
Tamil Nadu state government by issuing mining licences for the
atomic mineral monazite.

Monazite is an atomic mineral which can be processed to extract

thorium and uranium. It is found naturally and in abundance in
the coastal sands of the South Tamil Nadu, Kerala, Andhra
Pradesh and Orissa. Monazite is found mixed in with other
minerals in the sand these are termed as beach minerals or rare
earth minerals and are strategic in nature. The other minerals

22
found along with monazite are ilmenite, garnet, rutile, sillimanite
and zircon amongst others.

Up until 1998, mining of beach minerals was banned by the

government due to their strategic importance. Only the
Government of India could mine these minerals. In 1998, however,
the law was amended. Rare earth minerals like garnet, ilmenite,
rutile could be mined by private players on satisfying stringent
conditions. But Monazite continued to remain on the Prescribed
Substances list. And the Atomic Energy Act of 1962 made it plain
that handling of Monazite itself required a license from the Atomic
Energy Regulatory Board (AERB).

Mining for monazite too requires a special license from the AERB.
The rule book also says that if monazite is removed from the beach
sand as a by-product of mining for other beach minerals, this
monazite has to be stored as per regulations issued by the Atomic
Energy Board and the AERB and handed over to the Atomic
Minerals Board in Hyderabad every three months.

It is clear, under the Mines and Minerals (Development and

Regulation) Act 1957 that permission to mine all of these beach
sand minerals can be issued ONLY by the Centre and not by state
governments.

The Department of Geology and Mining of the Tamil Nadu

government has granted 16 licenses in 2012-13 allowing private
companies to mine the atomic mineral monazite. This in itself is
invalid as only the Centre has the authority to issue licenses to
mine any beach mineral. Allowing mining of monazite only
compounds the issue the state government is, in effect, giving
private companies carte blanche in mining a mineral that is the
raw material for nuclear fuel.

23
What is worse, the state government prescribed a royalty of Rs 125
per tonne for monazite. This is a validation, a tacit permission for
the private company to sell the monazite that they have mined an
act that violates the law of the land and seriously threatens
national security.

Mining of sand close to the sea is an ongoing corruption feeder in

Tamil Nadu. The main source of corruption in stealing mineral
sand happens in Thoothukudi, Tirunelveli and Kanyakumari
districts with the primary culprit being V.V.Minerals and its
subsidiaries, the benamies of Chief Minister and certain Ministers.
It is significant to note that of 111 permissions has been granted to
mine Garnet Sand in India, 96 have been given to the said
company and further 44 licenses have been granted to the same
company to mine Elmanite and this is evidenced by the numerous
rights and benefits conferred on them with no apparent reason for
such assignment and it includes the right to mine Elmanite for
which special permission has to be received.
The period dating between 2002 and 2012 Monozite of 2.10 million
tons and Thorium of 2.35 lakh tons has been illegally mined and
thus the extent of money lost to the Government is nearly Rs. 60
Lakh Crores.

This accusation springs from a discrepancy between two reports

by the Atomic Minerals Directorate for Exploration and Research
(AMDER) of the Department of Atomic Energy (DAE). In a report
read to the Lok Sabha in 2012, the AMDER stated that there were
10.7 million tones of monazite on Indias beaches; in a similar
report prepared in 2002, the AMDER had claimed 12.8 million
tones of the mineral to be present. This would indicate that 2.1
million tonnes of monazite, or approximately 235,000 tones of
thorium, had gone missing in the intervening period.

24
a) If there had been no corruption, India would have the ability to
generate electricity for the next 700 years from the thorium,
illegally mined.

b) If Thorium had been productively used to the extent as other

sources of electricity, it is reported that electricity could have been
generated for a staggering period of close to 23,500 years.

c) The main culprit is once again V.V. Minerals which has been
responsible for almost 75 percent of the corruption.

The former Collector of Tuticorin Mr. Ashish Kumar has given a

report on the large scale corruption in mineral sand mining and
selected activities. On the very next day, namely 06.08.2013, he
was transferred from that post and this establishes the fact that he
was unwilling to co-operate with the corrupt activities of the
A.I.A.D.M.K., Government. A committee was appointed two days
later under the chairmanship of Shri.Gagandeep Singh Bedi an
IAS officer and Revenue Secretary and he submitted his fact
finding report dated 17.09.2013 to the then Chief Minister Selvi. J.
Jayalalithaa. The Government had refused to make this report
public since it contains shocking details of corruption. Even after
the Madurai Bench of the Honble Madras High Court had passed
an order directing the Government to take action, as early as on
29.05.2014, there has been no action by the State Government.
Other incriminating evidence is the fact that the M.D. of V.V.
Minerals is a shareholder/investor of JAYA TV, the refusal of
another report filed for the Thoothukudi region and the fact that
the money from the Sand Mafia goes to Government functionaries.

The fact has to be taken into account, that the Madras High
Court has admitted a PIL petition filed by G. Victor Rajamanickam,
praying for a special investigation team, (SIT) to probe illegal beach
sand mining in the Coastal Districts of Tamil Nadu. In this PIL the

25
petitioner states that the Government of Tamil Nadu has allowed
V.V. Minerals and others to export 4.45 lakh metric tons of place
minerals between September 18, 2013 and May 30, 2014 even
after and in contravention to two orders passed by state
Government banning beach sand mining in the state of Tamil
Nadu. The estimated loot is worth over Rs. 100,000 crores
besides ravaging of the coastal ecosystem.

Charge No: 3 Corruption in River sand mining :

Corruption in river sand mining is on par with mineral sand

mining. The State Government is equally a culprit in this sector.
The political parties encourage Arumugasamy and Palanisamy to
employ all illegal activities, to harness revenue that is due to state
Government. It is estimated that Government can earn revenue of
Rs. 15000 crores per year, but Government states that only Rs.
188 crores of revenue is earned. River sand is digged from all
major rivers, to a depth of 20 feet and is distributed to
neighbouring states Andhra, Karnataka and Kerala.

Even though the Madras High Court has passed orders,

directing the Collectors of Vellore and Tirunelveli to prohibit the
sand mining, no concrete action was taken by those Collectors. In
addition to these judgments, the Madras High Court ordered for a
CBI enquiry but the state Government went on appeal and got the
orders reversed.

The sand mining magnates are capable of committing murder of

those persons who act as obstacles to their illegal mining. The
murder of Kanagaraj, a watchman at Kosasthalai River in
Thakkolam on 20.7.2014 and the murder of Sathishkumar on
13.03.2012 at Mittadharkulam in Nambiyar in Tirunelveli District

26
are best examples. The Government has not initiated any material
action to counter those acts. Thus the Government machinery has
colluded with private persons, resulting in revenue loss to
Government and undue advantage to private persons, acting as
benami to political leaders.

B. Corruption in Power Sector

The sector in which corruption is most manifest in the state is

power sector. In the election manifesto released by AIADMK for the
2011 election promised the following measures to rejuvenate the
power sector and deliver uninterrupted and good quality power to
all the consumers in the state:
i. TNEB would be reformed and distribution of power would be
streamlined to make it efficient
ii. Power theft will be totally eliminated
iii. Fast and effective action would be taken to ensure
uninterrupted power supply to homes, industry and agriculture.
Feeders supplying power to these consumers would be segregated
and distribution/delivery streamlined by adopting modern
technologies.
iv. Every village and town would be supplied with continuous 3
phase power in 4 years time.
v. By 2012, additional capacity of 5000 MW power would be
installed. Also 1000 MW of power will be generated through
municipal waste.
vi. By 2013 through ten 300 MW solar parks 3000 MW solar power
would be generated.
vii. Wind energy would be augmented by 30% and nuclear power by
25%

Through these measures Tamil Nadu was promised to be a power-

surplus state where there will not power-cuts whatsoever. None of
these promises have been kept and TN has been going through

27
severe power crisis that has severely affected industrial production,
economic growth, employment, quality of life and livelihood.

All this because of rampant and brazen corruption and

mismanagement as the facts below would prove. This is deliberate
action on the part of the Chief Minister, Ministers and officials to
create a crisis to indulge in corruption.

Charge No. 4: Maladministration: Inordinate delay in

completion of power projects

The first charge of corruption lies in respect of the deliberate delay

in implementation and execution of various power projects in the
State. For example, fully knowing that the power situation in State
was precarious, there has been delay of 29 months in executing the
North Chennai thermal power plant [NCTPP] and consequently
there was a loss of 944.767 crore units of electricity since these
could not be generated in time. Apart from this, a unit in Mettur
[MTPP] and a second unit in North Chennai were both delayed by
24 and 22 months respectively which resulted once again in huge
losses.

Charge No.5: Maladministration: Failure to recover penalties

from the contractors of power plants

It is also brought to notice that the Government had entered into

two separate agreements with BHEL and BGR for completion of the
aforementioned projects and that they were supposed to complete
the projects within the specified time. In the event of delay, the
contract stipulated payment of penalties. The penalties were to be
collected at the rate of 0.5% on Rs.3114.7 Crore, 0.75% for delays
beyond the 5th and 6th weeks and beyond this at 1% till the works
are completed. Such penalties if properly levied would have
amounted to Rs.7418.07 crores payable by the Contractor to

28
TANGEDCO and till date this amount has not been paid and no
sincere efforts has been taken to collect the same. It is further
reported that around Rs. 10,000 crores accurued over the last 10
years, are yet to be collected from the agencies implementing these
electricity power projects. Recently TNERC suo motto ordered a
tariff revision stating that the difference between income and
expenditure of TANGEDCO is Rs.5,200 Crore, and therefore if the
penalties of Rs.7418.07 Crore had been collected, there would have
been no necessity to burden the common man with tariff revision.

Charge No.6: Maladministration in completing 3600MW ILFS

project in Tamil Nadu

The 3,600 MW thermal power project of Infrastructure Leasing and

Financial Services, a power arm in Tamil Nadu has been delayed by
a year-and-a-half on execution issues, forcing a sharp escalation in
cost and a ratings downgrade. In support of these charges, relevant
portions from the Report of the Comptroller and Auditor General of
India, on Public Sector undertakings for the year ended March
2013 (Govt. of TN Report No.1 of 2014), captioned Performance
Audit on the Augmentation of Thermal Generation capacity of TN
Generation and Distribution Corporation Limited (TANGEDCO) is
extracted below:-

During XI Five Year Plan (207-12), The State of Tamil Nadu

planned capacity addition of 7,808MW to meet the deficit of power.
This included 3,270 MW of capacity addition by TANGEDCO of
which 2,500 MW of power was proposed to be from four thermal
projects. While the two thermal projects at North Chennai Thermal
Power Station Stage-II (2x600 MW) (NCTPP) and Mettur Thermal
Power Station Stage-III (1x600 MW) (MTPP) have already suffered
time overrun of 24 to 31 months, the balance projects were either
not taken up or abandoned midway. Consequently, the actual
capacity addition of TANGEDCO by the end of March 2012 was
only 112 MW which were from hydel and gas based power stations

29
and increased to 712 MW due to completion of MTPP on October
2013. To assess the efficiency and effectiveness of implementation
of thermal projects, a performance Audit was taken up from April
to August 2013.

Pre-implementation arrangements, planning and financial tie-

ups.

TANGEDCO did not formulate any pre-order criteria, for

implementation of the projects by laying down activity-wise
schedules for each pre-order activity and took 28 months for
finalizing investment approved after getting administrative approval
for the projects.

TANGEDCO obtained coal linkage for all the three units when
their capacity was fixed as 500 MW each. After enhancement of
capacity of the units to 600 MW each, it did not obtain the
enhanced coal linkage from Ministry of Coal, Government of India
implying that it would have to be dependent on imported coal for
additional capacity of 100 MW each for these units.

Cost estimation and project financing

TANGEDCO did not pass on the additional interest burden of

Rs.58.68 Crore to BHEL as per the contractual terms.

In respect of MTPP, arrangement of the project finance in two

spells instead of in one spell led to avoidable interest burden of
Rs.36.14 crore from Power Finance Corporation/Rural
Electrification Corporation due to delay in completion of the
projects.

Award of contracts
Award of contracts for Unit-I of NCTPP to BHEL under
Engineering, procurement, Construction-cum-Finance basis by

30
TANGEDCO deviated from the guidelines of National Electricity
Plan (NEP), 2007 which did not allow arrangement of financing
packages from the manufacturers/suppliers as it could reduce
competition among the bidders.

TANGEDCO could not avail the benefits of Mega Power Projects

due to award of NCTPP Unit-II on nomination basis instead of
under International Competitive Bidding (ICB) route as required.

Project management

There were delays up to 718 days in approving the drawings

furnished by the contractor of MTPP and delays of 12 and 22
months in furnishing the Project Authority Certificate and
Essentiality Certificate respectively, in respect of NCTPP which was
essential for importing the equipment required for the project.

Ambiguity in tender specification regarding Railway siding led to

stoppage of work from April 2010 to June 2012 and avoidable cost
escalation of Rs.3.71 Crore.

The guidelines of Ministry of Environment and Forests (MOEF)

with regard to Zero discharge outside the plant boundary were not
adhered to.

Incorrect choice of installation of semi-wet bottom ash handling

system instead of dry system would result in loss of revenue of
Rs.14.15 crore per annum.

Due to non-readiness of the ash handling system, the excessive

usage of oil to generate steam led to additional expenditure of Rs.
63.71 crore.

Supporting Services

31
 Construction of the third dedicated coal berth at Ennore Port
was delayed and expected to the completed only in 2015-16. The
present contingency plan to operate coal berth of a private firm
would result in additional expenditure of Rs.6.55 core per annum.

Non-adherence to pollution control requirement

Construction of intake sea water channel for NCTPP was

completed without obtaining the required permission from Coastal
Regulatory Zone (CRZ)/Pollution Control Authorities.

Installation of Effluent Treatment Plant required for segregation

of oil waste was not completed as prescribed by the Tamil Nadu
Pollution Control Board (TNPCB).

Conclusion

Delay of more than two years in completion of these projects

was due to (i) planning deficiencies such as not firming up the size
of the projects and mode of execution and non-synchronization of
water facility, etc., and (ii) delays in implementation on account of
delay in approval of drawings, issue of Project Authority
Certificate/Essentiality Certificate and stoppage of work for more
than two years due to incorrect tender specifications for railway
siding etc. Delays in coal handling and ash handling systems were
also noticed.

The project monitoring was delegated, project monitoring team

was not constituted as envisaged and the project monitoring
information system included in the scope of work EPC contractors
was not implemented till date (December 2013).

Despite delays in project execution TANGEDCO did not fix the

responsibility for the delays either at its end or on the EPC
contractors.

32
 Due to delay in completion of thermal projects with a capacity of
1,800 MW, the State was deprived of TANGEDCOs own generation
to extent of 22,557 Million Units. This resulted in purchase of
power from other costlier sources.

Charge No.7: Purchase of electricity from Private parties at

exorbitant rates with corruptive mind:-

The Government of Tamil Nadu have failed to generate

additional power as planned by them, have failed to collect the
penal amount from private contractor and thus it resulted in
failure to enjoy the concessional rebate offered by Government of
India. On the other hand, the Government of Tamil Nadu has
procured electricity from other producers, to compensate the gap in
production. The Tamil Nadu Government is producing only 4000
MW of electricity, whereas its daily requirement is estimated to be
12,000 MW. They have procured electricity from Central
Government agencies and private producers, and have spent
Rs.22,090 crores during 2013-2014, and have estimated the
purchase at Rs.27,147 crores for the year 2014-2015.

In the purchase of electricity from other parties, it is purchased

at the rate of Rs.2.94 or Rs.3.85 per unit from Central Government
owned power producing agencies, like Neyveli Lignite Corporation,
Kalpakkam Atomic Power Project, NTPC, etc. at the rate of Rs.4.26
or Rs.4.76 per unit from private agencies which produce Wind
Energy, Solar Power, Bio-Tech-Energy etc. whereas the same
electricity is being purchased at the rate of Rs. 15.14 from four
private purchasers viz. Samalpatti Power Corporation, Madurai
Power Corporation, Pillai Perumal Nallur Electricity Corporation
and G.M.R. Power Corporation. Even though the Tamil Nadu
Electricity Regulatory Corporation has objected to purchase of
electricity at more than Rs.5.50 per unit, the Government continue
to purchase at Rs.15.14 per unit from those four private parties,

33
with some ulterior motive. For a comparative analysis, it is
submitted that while 2865 million units of electricity is being
procured for Rs.1473 crores, only 798 million units is purchased
for Rs.1208 crores from those four private producers, resulting in
an excess payment of Rs.900 crores.

C. Others

Charge No: 8 Corruption in construction and building

approvals.

Recently a 12-storey under-construction building in Maulivakkam

near Porur collapsed leading to death of 61people and serious
injuries to many more. This gruelling disaster has been hushed up
because corruption was the main cause for the collapse and the
building was the benami of a senior minister who enjoyed the
patronage of the Chief Minister. This was a manmade disaster
caused entirely by negligence and rampant corruption of officials.
Bribing to get building permission has become a rule rather than
exception and at the behest of Chief Minister and Ministers, CMDA,
Chennai Municipal Corporation and local bodies have become
corruption/collection agents. In Chennai, at least Rs 1 lakh has to
be paid for bribes to construct a house.

Due to rampant corruption violation of building rules has become

very rampant and a business by itself since there is no
enforcement of Rules. For instance most buildings in T Nagar don't
have fire safety equipment and facilities. No action has been taken
by CMDA or corporation to regulate such violators. Most buildings
don't have enough space for ambulances and fire engines to carry
out rescue operations.

34
There is a well-organised system of bribe giving to get building
approvals. Builders, who seek plan approvals from CMDA and
Directorate of Town and Country Planning, are summoned to the
house of an influential person in the night to work out the
modalities of approvals. Rs 100-150 per sqft is collected as bribe
for giving approval. Even educational institutions are not spared.
As per reliable sources the target of bribes to be collected under
this head is a staggering Rs. 36,000 crores during the tenure of the
present government

Charge No 9: Corruption in procurement of pulses by TNCSC

for public distribution:

Tamil Nadu Civil Supplies Corporation is the purchasing agency

for all food items, which are distributed through Fair Price shops at
subsidized rates for consumption by economically poor people.
TNCSC has shifted its policy of purchase of pulses from monthly
basis to annual basis. When the policy is shifted to annual
purchase it should be for the benefit of the Government and the
benefit should reach the public. But, in contrast, the purchase
price has exceeded the monthly price quoted and also exceeded the
annual average price arrived. Moreover, the agencies which has
been chosen for supply of pulses is not commercially a viable
supplier as the agency has been penalized and debarred by
Karnataka Government.

One of the two above said companies quoted Rs.89,000/- per

metric ton (MT) for Urid dhal and Rs.75,000/- for Yellow lentils and
this has been accepted and the second company has been chosen
for supplying those pulses. To quote a comparative analysis,
during January 2013 and August 2014, the TNCSC has purchased
urid dhal at the range of Rs. 44256/- to Rs. 70700/- but now
Government has agreed the supply of urid dhal at Rs.89,000/- per
MT. Similarly, the yellow lentil has been purchased in the range of

35
Rs.41,800/- and Rs.52900/- per MT, but now the second company
has agreed to supply at the price of Rs.75,000/-. Thus, the
Government has accepted a higher price from a commercially bad
firm with ulterior motive. Moreover, the Government of Tamil Nadu
have intentionally incorporated a new provision in Tender Pre-
Qualification conditions in TNCSC Tender dated 20.01.2015, that
the bidder should have reported an average annual turnover of at
least Rs.60 crores in the last three financial years, Whereas it was
Rs.3 crores for dhal in TNCSC tender dated 03.01.2014. Thus the
Government has acted with a pre-determined strategy, to favour a
particular company, and thereby gain certain advantages to
specified persons.

Charge No 10: Corruption in purchase of eggs for use in

Nutritious Meal Scheme implemented by Government of Tamil
Nadu.

The Government of Tamil Nadu requires 60 lakh eggs daily for

use in Nutritious Meal Scheme, served to school children. At this
rate, Government requires 12 crore eggs per month. This
requirement is fulfilled by private suppliers through open tender
system. For the current year 2014-2015, two firms, have been
chosen for supply of eggs, at the rate of Rs. 4.51 per egg. This
price of Rs.4.51 per egg is higher to the average price of Rs.3.31 per
egg (for Namakkal) declared by National Egg Coordination
Committee. Accepting this higher price of Rs.4.51 per egg is also
contravenes the provisions contained in Rule 4 (V) of Tamil Nadu
Transparency in Tender Rules, 2000, which states that the fixed
contract rate as on 02.04.2003 should not exceed the price fixed by
the National Egg Co-ordination Committee. But, this rule has been
violated; price has been fixed at Rs.4.51 per egg, while the average
price quoted by NECC is only Rs.3.31 per egg. Thus at the
difference of Rs.1.20 per egg in the purchase of 8.55 crores of eggs
per month, loss of 12.31 crores of rupees is met by Government.

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Moreover, that the two firms are not owners of any poultry firms,
have no record of any experience in egg production/supply. They
have entered the business as new comers, endangering the trade
prospectus of traditional producers and small scale producers in
the egg market. Thus the Government has chosen new firms, with
a higher price, which exceeds the NECC quoted price with an
ulterior motive, at the expense of public cause and their health.

Charge No 11: Corruption and adulteration of milk

One of the most essential food item for a child and an adult is Milk
and this was also not spared and the general public were forced to
drink diluted and adulterated Milk produced by Aavin. A lorry
supposed to carry in its container pure Aavin Milk to the public
was found carrying water and chemical mixed milk. The Minister
in charge was removed from the post but proceedings in
accordance with laws are not initiated against him under to the
applicable legal provisions. The main agent owner of milk vans,
Mr. Vaidyanathan was arrested but other prosecution activities are
very slow. The State of Tamil Nadu uses 2 lakh litres of milk daily
with illegal addition of 10% of water and therefore approximately
Rs.300 crores has been misappropriated each year. The
A.I.A.D.M.K. Government is trying to hide the extent of corruption
by stating that the extent of corruption is at Rs.2.89 lakh per year
which is a gross under estimation with an intention to protect their
own party workers.

Charge No. 12: Corruption in awarding contracts in PWD, state

local bodies

Other instances of corruption include the giving of tenders for work

in Highways, PWD and local bodies. All these are fraught with
corruption and almost all the deals are done tainted with bribery.

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There is a fixed percentage share to each officer in any award of
contracts.

Charge No.13: Corruption in recruitment of transport

employees:

In the transport department, there is a requirement of employment

of 7,500 drivers and other officials. The present rate for their
appointment is set at a minimum of Rs. 3 lakhs. The requirements
for their appointment include a written test, a test which is almost
never done. Bribery is rampant and thus an amount of nearly
Rs.300 Crores has changed hands.

Charge No 14: Corruption in granting permission to Coca Cola

plant:

It is stated that there has been large scale corruption in giving

permission to set up a coco cola manufacturing plant in the
SIPCOT area of Perundhurai near Erode. Minister for Highways
Edapadi Palaniswamy, Minister for Industries Thangamani,
Minister for Environment Thoppu Venkatachalam are rumoured to
be involved. It is further rumoured that the Minister for Highways
Edapadi Palaniswamy has been the main source through which
several crores of rupees were given as a bribe.

Charge No 15: Corruption in appointments in the education

sector

The A.I.A.D.M.K. government extended its corrupt hands in

education sector also. In order to become a Vice Chancellor of a
University, an amount ranging between 5 Crore to 30 Crore is
taken as a bribe and in order to become a Professor, the amount of
bribe to be given ranges between Rs 25 lakh to Rs 30 lakh and this
has led to serious violations of the rules to be followed in
appointing Professors. In light of this issue, a case has been filed
in the Honble High Court at Madras and therefore the next

38
recruitment has been stopped until the investigation into these
allegations comes to a close.

With regard to Open Universities in Tamil Nadu, there is large scale

corruption in the recruitment of professors. Due to this and as per
an order dated 22.12.2014, the Syndicate meeting scheduled to
have taken place has been postponed and around 10,000 State
Government employees have been transferred and as a
consequence of this, nearly around Rs.50 Crore has changed
hands. The manner in which it has been done was ostensibly
transferring them to unknown places and then transferring them
back to their place of preference and Rs.75,000 is required to file a
request towards the approval of setting up a Private Educational
Institution and Rs.75,00,000 is required for actual approval to be
granted. In respect of transfer of teachers by counselling system
also, no transfer is made without illegal payment of 2 or 3 lakh per
transfer.

It is also widely reported that for securing appointments to the

office of the supervisor of the noon meal scheme, a sum of Rs.2.50
lakh to 3 lakh is being collected.

Charge No 16: Corruption in Solar Power driven green houses

The State Ministry for Rural Development has started to construct

solar energy driven green houses through the aegis of the Tamil
Nadu Chief Minister Housing Scheme. During the past four years,
2.40 lakh houses had been built and an amount of Rs.900 Crore
had been exchanged. On the other hand, an amount of Rs.1000
crore has been collected illegally from the 4 lakh beneficiary of
Indira Gandhi Housing Scheme.

Charge No 17: Corruption in Liquor Business

39
State Government selling liquor in retail itself is corruption at its
worst, because it robs the poor of their earnings, affects
productivity of workers, destroys family and cause serious distress
to womenfolk. By stocking the TASMAC shops with low quality but
costly liquor procured almost exclusively from the distillery (Midas)
belonging to Chief Ministers close associate and her partner in
business government is indulging in huge corruption and cheating
of the people. Most of the income of this distillery running into
thousands of crores of Rupees is in black and is being used for
nefarious purposes.

Charge No 18: Coterie Rule to facilitate corruption and

maladministration

In Tamil Nadu government is not being run on the principles of

democratic decentralization and administrative competence.
Instead all powers have been concentrated in a coterie that takes
all decisions and only give diktats in the name of the Chief Minister
to ministers and officials. This coterie is an extra-constitutional
entity comprising of retired officials and business associates of the
Chief Minister mostly operating from the Poes Garden residence of
Ms. Jayalalithaa. They design the corruption package and fix
targets and deadline for the Ministers and officials to collect.
Performance of Ministers are evaluated based on their capacity to
collect and not doing any productive job.

This practice is continuing and in fact has intensified after the

conviction of Ms. Jayalalitha and her virtual confinement in her
residence. O.Paneerselvam is a dummy and namesake Chief
Minister who takes orders on a daily basis from this coterie. The
very fact that he carries Ms. Jayalalithaas picture on his chest and
swears by her in all his actions is proof of this.

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This coterie rule has been deliberately designed and practiced
for indulging in illegal activities with the sole purpose of
amassing wealth by all means as detailed in the earlier pages.
Humungous corruption and maladministration is the result.
This cannot be countenanced.

Action Required

Your Excellency,

The misdeeds reported in this petition amount to offences

committed by public servant. The Indian Penal Code and the
Prevention of Corruption Act, 1988 define offences committed by
public servants, by abusing his/her official position for his/her
pecuniary advantage.

As you are aware, as per Article 163(1) of the

Constitution, the Governor of the state exercises a wide range of
functions and duties with the aid and advice of his Council of
Ministers. Though the executive power that vests in a Governor is
to be exercised through his ministers, the Governor does have the
power of discretion.

One of the salutary Constitutional principles in this

regard is Article 167(b) of the Constitution. This provision inter
alia provides that

It shall be the duty of the Chief Minister of each State;

41
 b) to furnish such information relating to the administration
of the affairs of the State and proposals for legislation as the
Governor may call for;

Again, though this part of Article 163(1) of the

Constitution requires the Governor to act on the advice of his
ministers, the latter part of Article 163(1) empowers the Governor
to exercise his discretion in respect of matters, which under the
Constitution he is required to act independently.

The obligations of the Governor to discharge a function

under the Constitution in exercise of his discretion may also arise
by implication from the tenor of the Constitutional provisions, the
very nature of the functions or the exigencies of a particular
situation where it is not possible or practicable for the Governor to
seek or act on ministerial advice in the discharge of this
responsibility, he should have due regard to his oath of office, vide
Article 159 which binds him to preserve, protect and defend the
Constitution and the law and to devote himself to the service and
well-being of the people concerned.

The Administrative Reforms Commission in its report in

1969 observed that the Governor as head of the State should by
his impartiality and sense of fair play, command the respect of all
the parties of the State. These observations remain valid today as
they did in 1969.

Section 7 of the Prevention of Corruption Act, 1988

states:- "Whoever, being, or expecting to be a public servant,
accepts or obtains or agrees to accept or attempts to obtain from
any person, for himself or for any other person, any gratification
whatever, other than legal remuneration, as a motive or reward for
doing or forbearing to do any official act or for showing or
forbearing to show, in the exercise of his official functions, favor or

42
disfavor to any person or for rendering or attempting to render any
service or disservice to any person, with the Central Government or
any State Government or Parliament or the Legislature of any State
or with any local authority, corporation or Government company
referred to in clause (c ) of Section 2, or with any public servant,
whether named or otherwise, shall be punishable with
imprisonment which shall not be less than six months but which
may extend to five years and shall also be liable to fine.

Section 11 states:- Whoever, being a public servant,

accepts or obtains or agrees to accept or attempts to obtain for
himself, or for any other person, any valuable thing without
consideration, or for a consideration which he knows to be
inadequate, from any person whom he knows to have been, or to
be, or to be likely to be concerned in any proceeding or business
transacted or about to be transacted by such public servant, or
having any connection with the official functions of himself or of
any public servant to whom he is subordinate, or from any person
whom he knows to be interested in or related to the person so
concerned, shall be punishable with imprisonment for a term
which shall be not less than six months but which may extend to
five years and shall also be liable to fine.

Section 13 (1) (d) of the Prevention of Corruption Act,

1988 states:- A public servant is said to commit the offence of
criminal misconduct, if he,

By corrupt or illegal means, obtains for himself or for

any other person any valuable thing or pecuniary advantage; or
by abusing his position as a public servant, obtains for
himself or for any other person any valuable thing or pecuniary
advantage; or
while holding office as a public servant, obtains for
any person any valuable thing or pecuniary advantage without any
public interest; or..

43
Your Excellency,
It is on the basis of the above said legal and judicial provisions that
we place the petition for your earnest consideration and we hope,
as a sentinel of the Constitution and in exercise of your powers
under Article 167 (b) you will call for a report from the Chief
Minister in respect of the allegations set out herein, in public
interest. We also hope that in exercise of your larger constitutional
role, you will, if you find Chief Ministers report unsatisfactory,
constitute a fact finding committee headed by former Supreme
Court Judge to go into the issues set out in this representation,
ascertain the veracity and order appropriate action.
We earnestly request your Excellency to exercise the
Power under Article 167(b) of the Constitution of India, and seek a
report from the Chief Minister of Tamil Nadu, make the response
public and if the reply is not satisfactory, recommend the
constitution of a Commission of Enquiry headed by former
Supreme Court Judge to look into the allegations stated above, in a
time bound manner.

Yours sincerely,

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