Alleging that Municipal Administration Minister S.P. Velumani had abused his official position and exercised his personal influence as a Minister to obtain government contracts for companies run by his benamis, the DMK on Monday demanded that a case be registered against him, his benamis and other public servants who allegedly colluded with him.
In a memorandum to the Directorate of Vigilance and Anti-Corruption (DVAC) and the Vigilance Commissioner, R.S. Bharathi, the organisation secretary of the DMK, alleged that Mr. Velumani had placed his benamis as directors in a few companies, shortly before civil contracts were awarded by the Corporations of Chennai, Coimbatore, Salem, Tirupur and Tiruchi, the Government of Tamil Nadu, the Public Works Department, the Chennai Metro Rail Ltd. and the Chennai Smart City Ltd.
“I have documents to substantiate the above allegations, and am willing to produce [them] if I am asked to do so,” he said in his petition.
Mr. Bharathi said KCP Engineers Pvt. Ltd., P. Senthil & Co., Vardhan Infrastructure, Constronics India, Aalayam Foundation Pvt. Ltd., Constromall Goods Pvt. Ltd. and Invicta Meditek Ltd. were the companies that were awarded the contracts.
‘Boost in turnover’
“These companies, all owned and/or managed by benamis (relatives or close associates) of Mr. Velumani have, over a short span of two years, seen a humongous increase in turnover, in one case by as much as 3,000%,” Mr. Bharathi alleged.
Describing the contracts as illegal, arbitrary, riddled with malpractice and contrary to the laws and regulations relating to public procurement and tenders, Mr. Bharathi alleged that with the ill-gotten wealth from these contracts, Mr. Velumani and his benamis had enriched themselves. Besides, he claimed that they had used these companies to launder unaccounted money.
He also demanded a probe into the various aspects of the contracts, saying they were awarded to these firms despite their not having any past expertise in the relevant areas.
Pointing out that the surplus of the Chennai Corporation had declined from ₹942 crore in 2012 to ₹566 crore in 2013 after Mr. Velumani became a Minister, he said the Corporation had taken a loan of ₹2,500 crore.
“Now, Chennai Corporation is a debt-ridden body, chiefly due to the maladministration of Thiru. S.P. Velumani, [which has been] highlighted by several irregularities in the tenders awarded by the Corporation,” Mr. Bharathi said.
According to the memorandum, when it came to tenders for Smart City projects, Mr. Velumani was exercising undue influence in order to award contracts to his benami consortium companies. “The Minister also misused his office and gave the same Smart City contract, worth ₹149 crore, of the Chennai Corporation, to the consortium metal sheet company namely Acetech Machinery Components India Private Ltd., by indulging in all [kinds of] irregularities,” he alleged.
Call for audit
Reiterating that the actions of Mr. Velumani and other public servants linked to him were not only in violation of the penal law, but also of the Constitution, Mr. Bharathi said there was an urgent need to audit the various services provided by the companies of the Minister’s benamis.
“It is necessary to check if they were sub-standard, since they have obtained their contracts illegally and outside their area of expertise,” he said.
In cases of ongoing or yet-to-be-completed contracts, like the one for a multi-level parking facility, awarded by the Chennai Corporation, Mr. Bharathi demanded the cancellation of those that were illegally obtained.
