The Enforcement Directorate (ED) has escalated its investigation into alleged corruption within Tamil Nadu's Department of Municipal Administration, Urban and Water Supply (MAWS), directly implicating Minister K. N. Nehru. On Tuesday, January 20, 2026, the ED's Chennai zonal office formally requested the Tamil Nadu government to register a First Information Report (FIR) against Nehru and individuals connected to him, regarding an alleged 366 crore Rupees money laundering and bribery racket related to transfer and postings. The communication was addressed to the state's chief secretary and the Directorate of Vigilance and Anti-Corruption (DVAC).
This request follows previous letters sent by the ED to Tamil Nadu authorities in October and December of last year, raising concerns about widespread corruption in the MAWS department's tenders and recruitment processes, also linking Nehru to the alleged irregularities. The agency claims to have uncovered a bribery ring involving the transfer and appointment of government officers and engineers within the MAWS.
According to the ED, evidence of the alleged corruption surfaced during searches conducted in April 2025 at properties linked to Nehru's relatives and associates in Chennai, Tiruchy, and Coimbatore. These initial searches were part of a money laundering investigation connected to a CBI-registered bank fraud case. While the bank fraud case was later closed after the accused repaid the loan through a one-time settlement, the ED said the analysis of seized digital materials revealed evidence of separate offenses related to the MAWS. The recovered materials included documents, digital devices, records, photos, and WhatsApp chats.
The ED alleges that bribes ranging from 7 lakh to 1 crore Rupees were collected for facilitating transfers and postings within the MAWS. The agency claims to have identified around 340 officers and engineers whose transfer or posting orders were found on the phones of Nehru's close associates. Furthermore, the ED has stated that it traced 365.87 crore Rupees in laundered funds to Nehru, his family, and associates. The agency's letter stated that these funds were allegedly used in real estate, investments in other properties including foreign assets, gold bullion, and luxury expenditures including liquor.
In response to the allegations, Minister Nehru has defended himself, stating that he is being continuously targeted by the ED in an attempt to defame him. He has also asserted that he will legally address the charges. Nehru has criticized the ED, accusing it of aligning with opposition parties that are intolerant of the DMK's achievements and are thus attempting to tarnish his reputation. When asked to comment on the matter, Nehru told The Indian Express that the matters are under inquiry and he does not wish to comment at this stage as he does not have clarity on the details.
The ED has urged the Tamil Nadu government to register an FIR based on the evidence, citing a 2022 Supreme Court ruling in the Vijay Madanlal Choudhary case. The ED stated that filing a police FIR on these charges was essential as laid down by the Supreme Court. The agency has stated that it shared data of a limited period and that the claimed bribery ring was wider. The ED had previously reported that bribes ranging from 25 lakh to 35 lakh Rupees were collected from each candidate and provided details of about 150 candidates whose information was found in the phones of close associates of K. N. Nehru. They also sought investigations into the appointment of about 2,500 candidates and provided evidence related to tender rigging or manipulation and corruption in government contracts ranging from 7.5% to 15%, providing direct evidence relating to the collection of 1,020 crore Rupees in bribes.
