ED steps into ₹100 crore school-recognition fraud case against ex-minister Anbil Mahesh

The Enforcement Directorate has begun examining alleged illegal financial transactions linked to an alleged ₹100 crore fraud in which private schools in Tamil Nadu were promised permanent government recognition in return for money — escalating a case first registered by the Chennai Central Crime Branch.

The central agency has obtained the case documents from the Crime Branch and is scrutinising the financial dealings connected with the alleged scheme. The ED's inquiry runs on the basis of the First Information Report registered by the city police, the standard foundation for a money-laundering investigation that proceeds alongside a state police case.

The allegations centre on money allegedly collected from private-school managements after assurances that they would be granted permanent recognition, school upgradation, DTCP approval and other government clearances. The police case names former school education minister Anbil Mahesh Poyyamozhi among the accused. DMK leader Arasakumar and three of his relatives have been arrested; a former DMK legislator, Muthukumar, is being sought by investigators, whose alleged role has not been detailed.

The Crime Branch's economic offences wing has already searched six premises in Chennai and Tiruchirappalli — four linked to Mahesh and two to his aide Valadi Karthik — seizing 118 documents, 18 mobile phones, three laptops, eight pen drives, two desktop computers, a tablet and an iPad, besides property documents, bank details and cheques. Police say their preliminary inquiry has covered 177 private schools, and that more than 250 people, including School Education Department officials, have been examined.

Mahesh appeared before the CCB on September 18 and was questioned for nearly eight hours. He has said the police prepared 295 questions, of which he answered 246, and that the seized documents largely related to his tenure as minister and Assembly proceedings. He has denied the allegations, alleged political motivation behind the searches, and moved the Madras High Court seeking to quash the FIR.

The ED is also reported to be planning searches at premises linked to Mahesh and Arasakumar, though no completed ED searches had been confirmed at the time of reporting. With the Directorate's entry, the financial trail of the alleged racket now faces scrutiny on two parallel tracks — the state police inquiry and the federal money-laundering probe.

The case is among the largest alleged corruption cases to surface in the state in recent months. The charges remain allegations; the former minister's denial stands on record, and the court will decide the quashing petition.