Tamil Nadu Anti-Corruption Body Faces Contempt Notice In 'Cash-For-Jobs' Case

Days after the Madras High Court directed the state's Directorate of Vigilance and Anti-Corruption (DVAC) to "forthwith register a case" based on material shared by the Enforcement Directorate (ED), the issue has escalated politically ahead of the Assembly elections.

IS Inbadurai, AIADMK Rajya Sabha MP and Secretary of the party's Advocate Wing, has issued a legal notice, warning the DVAC of contempt proceedings if it fails to comply with the High Court's February 20 order.

The notice, claimed to have been mailed today, alleges that the vigilance agency has not registered an FIR despite explicit judicial directions in connection with the alleged "cash-for-jobs" scam in the Municipal Administration Department headed by Minister KN Nehru.

What The Court Said

In its order, the High Court noted that the information shared by the probe agency, which investigates financial crimes, disclosed cognisable offences warranting immediate action. 

Paragraph 60 of the order, extracted in the contempt notice, states: "Though we are prima facie satisfied that the investigation could be entrusted to an independent specialized agency... we deem it appropriate that the second respondent/Vigilance Department should be directed to forthwith register a case and conduct a detailed investigation."

The bench further directed, "The second respondent/Vigilance Department is directed to forthwith register a case on the information shared by the Enforcement Directorate on 27.10.2025 under Section 66(2) of the Act and conduct a detailed expeditious investigation into the matter and proceed further in accordance to law."

The court had indicated that the failure to act could justify entrusting the probe to another competent agency.

Focus on First ED Dossier

The present controversy centres on the first of the three dossiers shared by the ED on October 27 last year. 

According to submissions placed before the court, the central agency alleged large-scale bribery in recruitment within the Municipal Administration Department.

The ED claimed that bribes ranging from Rs 25 lakh to Rs 35 lakh were collected for appointments to various posts. It told the court that documents and electronic records recovered during searches revealed what it described as a "systematic and organised job racket," and forwarded the material to the DVAC under Section 66(2) of the Prevention of Money Laundering Act for criminal action.

The High Court held that once such material disclosing cognisable offences is placed before a law enforcement agency, registration of an FIR is mandatory.

Allegation of Non-Compliance

In his notice, Inbadurai accused the DVAC of "persistent violation to the law of the land" and termed the continued failure to register an FIR as "contemptuous."

He warned that if the agency does not register the case and communicate the same as required by law, he would initiate contempt proceedings and seek transfer of the probe to the Central Bureau of Investigation or another independent body.

"As a Member of Parliament, it is my duty to ensure the Rule of Law is upheld," he said in the notice.

DVAC Yet to Act

As of now, the DVAC has neither registered an FIR nor challenged the High Court's order.

A senior DVAC source told NDTV, "We are holding legal discussions."

With elections approaching and the court's direction explicit, the vigilance agency's next move is likely to have significant political and legal ramifications in Tamil Nadu.

Political War of Words

Minister KN Nehru has denied the allegations, calling them politically motivated and asserting he would face the matter legally.

The ruling DMK has alleged that the ED is acting at the behest of the BJP-led Centre to target Opposition leaders in non-BJP-ruled states ahead of elections. The BJP has rejected the charge, maintaining that central agencies function independently based on evidence.