The Prime Minister’s Office (PMO) has approved the prosecution of two senior IAS officers in a corruption case involving alleged irregularities worth ₹98.25 crore in municipal contracts in Tamil Nadu. The development was brought before the Madras High Court on November 12, 2026, marking a significant step forward in an investigation that has faced prolonged delays over the required prosecution sanction.
The case also involves former Tamil Nadu minister S.P. Velumani and contracts awarded by the Greater Chennai and Coimbatore municipal corporations between 2014 and 2018.
Madras High Court Directs DVAC to Proceed With Charge Sheet
During the hearing before Justice N. Anand Venkatesh, the court was informed that the PMO had granted sanction to prosecute IAS officers K.S. Kandasamy and K. Vijaya Karthikeyan under the Prevention of Corruption Act, 1988.
Additional Solicitor General A.R.L. Sundaresan, assisted by Central government senior panel counsel V. Chandrasekar, presented the development to the court. A copy of the prosecution sanction order was also submitted during the proceedings.
Following the approval, the High Court directed the Directorate of Vigilance and Anti-Corruption (DVAC) to proceed with filing the charge sheet against all accused in the case.
The court also removed the Department of Personnel and Training (DoPT) from the list of respondents in the contempt proceedings, as its role in obtaining the necessary approval had concluded. However, the contempt petition will remain pending so that the court can monitor the DVAC's progress.
The prosecution sanction allows legal proceedings against the officers to move forward. It does not establish guilt, and the allegations will have to be examined through the judicial process.
Why Did the Prosecution Approval Take So Long?
The delay in securing prosecution approval had become a central issue in the case. The DVAC registered a First Information Report in 2021 and completed its investigation several years later, but the required sanction for prosecuting the two IAS officers remained pending.
The Tamil Nadu Legislative Assembly Speaker, M. Appavu, had granted sanction to prosecute former minister S.P. Velumani on February 12, 2024. However, the approval concerning the two serving or former senior administrative officers had not been resolved.
In 2025, Jayaram Venkatesan of Arappor Iyakkam approached the Madras High Court through a contempt petition, raising concerns about the delay by DVAC officials.
During earlier hearings, the court directed the Tamil Nadu government to forward the relevant documents to the Central government and included DoPT in the proceedings to ensure that the matter was addressed.
The State government subsequently submitted its proposal along with supporting records that required translation from Tamil into English.
On September 16, 2026, DoPT Joint Secretary Sushil Kumar Patel informed the High Court that the PMO was the competent authority to grant the sanction. He also explained that the documents had been sent to the Central Vigilance Commission for its views before being forwarded to the PMO. At that stage, the approval process was expected to be completed within two months.
What Is the ₹98.25 Crore Municipal Tender Case?
The investigation concerns alleged irregularities in civil contract awards made between 2014 and 2018, when S.P. Velumani held the Municipal Administration and Water Supply portfolio in the AIADMK government.
The contracts involved municipal bodies in Chennai and Coimbatore. The DVAC investigation includes the former minister and the two IAS officers, with the alleged financial irregularities estimated at ₹98.25 crore.
During the proceedings, Justice N. Anand Venkatesh expressed concern over the lengthy process required to obtain permission to prosecute senior public officials. He reportedly contrasted the delays involving influential individuals with the faster action often taken against economically weaker people.
His observations highlighted broader concerns about accountability, administrative transparency and the practical challenges involved in prosecuting public servants.
Next Legal Steps and Accountability
With the PMO's approval now received, the DVAC is expected to move forward with the charge sheet in accordance with the High Court's direction. The court will continue monitoring the investigation's progress through the pending contempt petition.
The development also underlines the importance of transparent public procurement, documented decision-making and effective financial oversight in government institutions. Strong financial investigation and forensic review processes can help organisations identify irregular transactions, assess financial records and strengthen accountability mechanisms.
The case remains subject to judicial examination. The prosecution process will determine whether the allegations against the accused are supported by admissible evidence.