DVAC registers FIR in multi-crore sand mining case in Tamil Nadu

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Representational image. File | Photo Credit: S.R. Raghunathan

More than two years after the Directorate of Enforcement (ED) sent a letter flagging an alleged ₹4,730-crore scam in illegal sand mining to the Tamil Nadu government, the Directorate of Vigilance and Anti-Corruption (DVAC) registered a case on Thursday (November 5, 2026). 

Special teams of the investigating agency launched simultaneous searches at 30 locations across Tamil Nadu early on Friday (November 6). The case was booked after prime facie evidence was established in a detailed inquiry, official sources said. 

The ED, while investigating allegations of money laundering involving illegal land mining in the State, found serious irregularities in the process of mining and sale of river sand. Investigators alleged that politicians and officials connived with contractors in the illegal sand mining operations. 

Experts were roped in from the Indian Institute of Technology, Kanpur, and other central agencies. It was established that a huge quantity of sand worth about ₹4,730 crore was illegally mined benefitting the accused persons.

The ED shared the information gathered during the probe with the the Director-General of Police and Head of the Police Force in compliance of the statutory obligation under Section 66(2) of the Prevention of Money Laundering Act, 2002, which mandated the central agency to share such information with the other law-enforcing agencies.

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It was alleged by the ED that the total value of the illegal sand mined during the period of check could be to the tune of ₹4,730 crore, whereas the revenue shown on record by the officials was only ₹36.45 crore.

The agency, provisionally attached assets worth ₹136.6 crore, including movable assets valued at ₹128.34 crore, comprising 209 sand excavators deployed in illicit sand mining. 

About ₹2.25 crore deposits in bank accounts, belonging to the contractors — Shanmugham Ramachandran, Karuppaiah Rethinam — and other accused persons were attached under the provisions of the PMLA, 2002.

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