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Stalin Alleges Contracts Worth Crores Given to Relatives of CM, Says Will Move Court if Governor Fails to Act

File photo of MK Stalin.  (PTI)

File photo of MK Stalin. (PTI)

In its memorandum, DMK stated that contractor Nagarajan is a partner in M/s Venkatachalapathy and Co., which is run by P Subramaniam, father-in-law of Mithun, son of CM Edappadi Palanisamy. It further stated that contracts to the tune of Rs 3120 crore have been awarded to Nagarajan, Subramaniam, Sekar Reddy who all have direct connections with the Chief Minister.

Poornima Murali
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Chennai: A week after Income Tax department recovered over Rs 173 crore in cash and bullion worth 100 kg in a raid conducted on SPK group and one of its promoters, Nagarajan Seyyadurai, the DMK on Monday submitted a memorandum to Governor Banwarilal Purohit alleging that contracts were given to relatives of the CM.

In its memorandum, DMK stated that contractor Nagarajan is a partner in M/s Venkatachalapathy and Co., which is run by P Subramaniam, father-in-law of Mithun, son of CM Edappadi Palanisamy. It further stated that contracts to the tune of Rs 3120 crore have been awarded to Nagarajan, Subramaniam, Sekar Reddy who all have direct connections with the Chief Minister. DMK alleged that EPS has held on to this portfolio for the past seven years and misused the office entrusted to him, therefore violating his office of oath.

After meeting the Governor, MK Stlain said his party will approach the court if no action is taken by the Governor. “We submitted a detailed memorandum about the I-T raids and the way contracts were given to relatives of CM in the highways department. Governor Purohit assured us that the complaint will be forwarded to home ministry. If there is no action, we will approach court for justice,” said MK Stalin.

He also alleged that the raids are used by the Centre to threaten the AIADMK Government. He said: “It appears all these I-T raids are conducted by the central government only to threaten and intimidate state government.”

AIADMK, however, has denied any link between the ruling party and the contractor who was raided. Last week, D Jayakumar, Fisheries Minister, told media: “The contractors were taking contracts during Jayalalithaa regime also and the I-T department is conducting these searches only after reports of tax evasion. There is no connection between the state government and the contractor. The same contractor was awarded contracts worth crores during the DMK regime also. It is unfortunate that Chief Minister’s relative is dragged into this.”

When asked if the DMK awarded contracts to the same firm, MK Stalin, on Monday, said: “There were no I-T raids during our regime. We did not give contracts to close relatives.”

Last week when I-T raids were conducted, Kamal Haasan too said the raids were mere eyewash. “Everyone has the right to know as to what happened during the I-T raids. It is also the duty of the Right to Information Department to reveal these facts to the public."

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