In a sweeping anti-corruption drive, the Enforcement Directorate (ED) has unearthed what it calls a “deep-rooted and systemic corruption network” involving bureaucrats, consultants, and shell firms operating across Tamil Nadu and Bihar. The latest operations—carried out under the Prevention of Money Laundering Act (PMLA)—have resulted in the seizure of unaccounted cash worth over ₹5 crore, and the attachment of properties worth ₹6 crore linked to tainted government deals.
Tamil Nadu: ₹5 Crore Bribe Trail Linked to Govt Clearances
On May 6, the ED conducted searches at 16 locations in Chennai and Vellore, targeting premises associated with state government officials and middlemen. The raids were linked to a disproportionate assets case involving S Pandian, a superintendent in the Tamil Nadu Environment Department, and were based on an FIR registered by the state’s vigilance department.
The agency stated that investigations revealed fixed commissions were paid to officials to expedite and illegally approve projects and contracts. Prominent consultants—Prabhakar Sigamony, A.K. Nathan, Naveen Kumar, Santhosh Kumar, and Vinoth Kumar—were found facilitating these illegal approvals through shell consultancy firms.
“Kickbacks were routed under the guise of consultancy fees and service charges,” ED said, noting that ₹4.7 crore in unaccounted cash intended for bribes was recovered.
The modus operandi allegedly included creating fake consultancy contracts to channel bribe money to public officials while masking the transactions as legitimate service payments.
Bihar: Medical Procurement Scam at PMCH Exceeds ₹12 Crore
In a separate but equally disturbing case, ED has attached ₹3 crore worth of assets across Patna, Greater Noida, and Darbhanga in connection with procurement irregularities at Patna Medical College and Hospital (PMCH). The total asset attachment under the case now stands at ₹6 crore.
The scam, which dates back to 2008–2010, involves the purchase of medicines, reagents, and hospital equipment at inflated prices and in excessive quantities. The primary accused include former PMCH Superintendent Dr. O.P. Choudhary, along with several private suppliers.
According to ED, the total loss to the government has been estimated at over ₹12 crore. A parallel investigation by the Bihar Vigilance Department has already resulted in a chargesheet against key individuals.
A Pattern of Fraud, Shell Firms, and Brokered Bureaucracy
Both cases underscore an alarming pattern: the use of intermediary consultants and shell companies to institutionalize bribery and bypass procedural safeguards in awarding government contracts.
“What’s emerging is not just petty corruption—but an organized economy of kickbacks, where bureaucratic processes are monetized through fixed commissions,” said an ED official involved in the probe.
While Tamil Nadu’s case involves illegal clearances in environment-linked departments, the Bihar case has direct implications for public health infrastructure, suggesting a compromise of lives and taxpayer money for private gain.
Legal Proceedings and Further Investigations Underway
As per the ED, both cases are being pursued under provisions of the PMLA, and more arrests and attachments are likely as digital and financial trails are uncovered. The money trail spans across multiple states, with investigators examining bank accounts, real estate, and company records.
The raids and seizures are part of a larger ED effort to curb corruption in government contracting, especially where critical public services—like healthcare and environment—are involved.
What’s at Stake?
With cash seizures, property attachments, and high-profile bureaucrats under scrutiny, these cases underscore the urgent need for institutional reform in how government contracts are awarded and monitored. The revelations highlight that systemic corruption is not just about individual wrongdoing—but about entrenched networks that exploit loopholes and bureaucratic opacity.
As ED continues to follow the money, the public will be watching for not just arrests—but real accountability.