Madurai Mayor and DMK leader Indrani Ponvasanth has resigned from her post amid allegations of a multi-crore property tax scam.
While Indrani did not take calls, her husband, Pon Vasanth, who was arrested in connection with the case and was recently let out on bail, told NDTV, "She has resigned on health grounds."
A Special Investigation Team (SIT) is currently probing the case, which involves extensive manipulation of property tax records.
According to officials, the scam dates back to the period between 2022 and 2024, when officials allegedly misused their powers to undervalue property taxes of around 150 commercial buildings.
An AIADMK councillor, who had filed a PIL, claimed that this led to an estimated loss of Rs 200 crore to the civic body. So far, at least eight individuals, including a former assistant commissioner of the corporation, have been arrested.
The fraud was detected during a routine audit last year, after which the then Madurai Corporation Commissioner, Dinesh Kumar, lodged a formal complaint with the city police on September 6, 2024.
Investigations revealed that a network of corporation staff, contract employees, and middlemen had colluded to manipulate tax data in the software system, reducing tax liabilities without the knowledge of senior officials.
In July this year, the Madurai Bench of the Madras High Court directed the Inspector-General of Police (South Zone) and the Madurai Commissioner of Police to form an SIT headed by a senior IPS officer "with proven integrity."
Following the directive, the Special Investigation Unit, led by DIG Abhinav Kumar of the Madurai Range, was constituted to probe the case.
The alleged scam came to the political spotlight after an AIADMK councillor petitioned the High Court, accusing the ruling DMK-run corporation of systemic corruption. The petitioner claimed that the fraud caused significant losses to public funds.
Chief Minister MK Stalin had earlier directed all four zonal chairpersons of the Madurai Corporation to step down in the wake of the scandal.
