The Central Bureau of Investigation (CBI) on Wednesday, 5 September, conducted raids in several locations in Chennai, including the houses of Tamil Nadu Director General of Police T K Rajendran, the ex-DGP S George, Health Minister C Vijayabaskar, former Milk and Dairy Development Minister BV Ramanaa, among others, in relation to the multi-crore gutkha scam.
Apart from the raids at homes of top officials in Chennai, raids also took place at over 35 locations of promoters and directors of Jayam Industries in Chennai, Tiruvallur, Thoothukudi, Puducherry, Bengaluru, and Mumbai, ANI added.
The raids reportedly started at 7:30 am. Nearly 40 places were reportedly searched by the CBI.
Rajendran’s house is located in Mogappair, while S George’s house is in Maduravoyal.
The raids come a year after the scam came to light. In April this year, the Madras High Court ordered that the CBI probe the case. The central investigation body took over the case from the Directorate of Vigilance and Anti-Corruption.
The Scam
On 8 July 2017, raids were conducted at the godown, offices, and residences of a paan masala and gutkha manufacturer in Tamil Nadu, who was facing charges of evading taxes to the tune of Rs 250 crore. The manufacture, storage and sale of the carcinogenic chewable forms of tobacco, including gutkha and paan masala, was banned by the state government in 2013.
Seized during the raid was a diary containing names of those who were believed to have been paid off by the gutkha manufacturers – and one among them was allegedly the state’s health minister.
Later, documents showed that an amount of Rs 40 crore was allegedly paid to the Minister and several officials as quid pro quo, for facilitating the sale of banned gutkha in Chennai.
The letter written by the Principal Director of Income Tax to the Chief Secretary and Director General of Police reportedly sought further investigation into the matter. The communication was made back in May 2016, but there was allegedly no action taken in the matter.
Top Cops and Bureaucrats Named in Gutkha Scam
Top cops and bureaucrats were named in connection to the scam. This included the state's Director General of Police T K Rajendran, former Chennai Police Commissioner S George, several officials in the department of Health and Food Safety and local councilors among others. The main allegation was that these individuals received payoffs from gutkha baron Madhava Rao.
The Income Tax department had told the Madras High Court that its report to the former Director General of Police Ashok Kumar on the gutkha scam was found during the raids conducted at Veda Nilayam in November last year.
The letter reportedly detailed corruption involving the Health Minister, top police officers and others in the scam.
According to the submission, the letter was found in former CM Jayalalithaa’s Poes Garden residence, specifically in her aide V K Sasikala's rooms, leading to questions on how a confidential letter was in her possession.
Despite the ban of gutkha, the business has been thriving in Tamil Nadu. According to reports, around 30,000 traders sell these products in Chennai district alone.
There are only 25 officers to monitor them and this includes officials who are allegedly paid a monthly bribe of Rs 35 lakhs by each company. Around 119 tonnes have reportedly been seized since 2013 in Chennai, but the quantity circulating in the market is predicted to be ten times that amount.
DMK MLA and Gutkha Scam Petitioner J Anbazhagan Says DGP TK Rajendran Must Quit
DMK legislator J Anbazhagan on Wednesday, 5 September, demanded that Tamil Nadu's Director General of Police (DGP) T K Rajendran must quit, after the CBI raided his residence in connection with the gutkha scam.
It was on Anbazhagan's petition that the Madras High Court ordered a probe by the Central Bureau of Investigation (CBI) into the scam.
Anbazhagan said Rajendran was on extension. The DMK leader argued that top officials who are given an extension should have an unblemished service record and that with Rajendran's residence being raided by the CBI, he should step down.
"The probe seems to be proceeding on the right track under the CBI. Whether a case will be filed against the scamsters or not will have to be seen. If no case is filed, then we may have to approach the Madras High Court again," Anbazhagan told IANS.
It is a Political Vendetta: C Vijayabaskar
DMK described the CBI searches at the residences of Tamil Nadu Health Minister C Vijayabaskar and DGP T K Rajendran a "shame" on the state and along with other opposition parties, demanded they be sacked, even as the minister termed it as political vendetta and vowed to come clean facing the matter legally and politically.
The ruling AIADMK, however, dismissed opposition calls for resignation or sacking of Vijayabaskar, saying Wednesday's raids were a 'routine' affair done under court direction and that anyone is 'innocent' before law till proven guilty.
Vijayabaskar, in a statement, said that since the raids were carried out by CBI on a court direction following a plea by DMK, he was ready to extend full cooperation to any probe as a “law-abiding citizen.”
He said he extended full cooperation to the CBI probe on Wednesday, 5 September and that he has not directly or indirectly met Madhav Rao, the gutka manufacturer.
Some think that they can finish me from politics by repeatedly spreading baseless charges due to political vendetta.C Vijayabaskar
Relying on a Tamil saying, he said only those who perform well will be targeted.
"It is normal for my political rivals to level such charges against me as I am working tirelessly to make the Health department a pioneering one in the country," he said.
Stating that he had nothing to hide, the minister said he would face this problem legally and politically and come out of it.
Searches Have Brought Shame to TN: MK Stalin
Demanding resignation of both Vijayabaskar and the state police chief, DMK President MK Stalin, in a statement, said, "The searches have brought shame on the state... Vijayabaskar continuing in the cabinet and Rajendran as the head of the police department will turn out to be a blot against people's rule and for the force, known for its honesty."
Hence, the Health Minister and the DGP should voluntarily quit their posts. If not, Governor Banwarilal Purohit should dismiss them without further delay, he said. He also recalled the DMK earlier moving court, seeking a CBI probe into the Gutka scam, pertaining to alleged pay-offs by a gutka manufacturer.
CPI(M) state Secretary K Balakrishnan also demanded that Vijayabaskar and Rajendran be removed from their posts and made to face the probe.
"What respect will people have on police and the government after these raids? This is a very bad situation,"he told PTI, adding that CBI should take the case to its logical conclusion.
PMK founder S Ramadoss termed the CBI searches as 'appropriate' in order to nail those involved and asked why the government was 'hesitant' to show the minister the door.
In a statement, he said PMK had for the last two years been insisting that Vijayabaskar be sacked as minister over the issue.
"By not removing Vijayabaskar, the K Palaniswami-led dispensation doesn't seem to be a government protecting people's welfare but that of scam-tainted ministers," he said, adding the minister and the DGP continuing in their posts was 'unacceptable,' and they along all others connected in this case should be dismissed by the state government.
Responding to opposition criticism, senior AIADMK leader and fisheries minister D Jayakumar said the central agency had carried out searches as per a court direction and that such things were done 'routinely.'
"Before the law, they are innocent (until proven guilty). There is an investigation and various procedures. It will be determined only in a court whether someone is guilty," he told reporters.
The investigating agency will probe the allegations and produce the material before a trial court, he added.
The question of Vijayabaskar quitting on moral grounds would arise only after the verdict in the case, he said.
(With inputs from The News Minute , ANI, PTI and IANS)
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