The Enforcement Directorate on Tuesday alleged that Dravida Munnetra Kazhagam leader and Tamil Nadu Higher Education Minister K Ponmudy issued “illegal” red sand mining licenses to his MP son, relatives and some benami holders, and that huge amount of “hawala” funds generated from this mining business was used to purchase companies abroad. It said it has seized “unexplained cash” of Rs 81.7 lakh and foreign currency, primarily British pounds, equivalent to about Rs 13 lakh from Ponmudy’s residence apart from fixed deposit receipts worth Rs 41.9 crore. The federal agency raided the premises of the 72-year-old minister and his son Gautham Sigamani in Chennai and Villupuram district on Monday following which it took them to its office in Chennai for an questioning and recording of statement.

