Madras High Court allows DVAC probe into cash-for-jobs scam against former Minister K.N. Nehru

The Madras High Court has dismissed a review application filed by former DMK Minister K.N. Nehru, clearing the way for the Directorate of Vigilance and Anti Corruption to investigate a multi-crore rupees cash-for-jobs scam. A First Division Bench of Chief Justice Sushrut Arvind Dharmadhikari and Justice G. Arul Murugan refused to change an earlier February 20 direction that ordered the DVAC to register a First Information Report and begin a probe.

Court Rulings

The judges upheld the earlier direction issued by a Bench comprising former Chief Justice Manindra Mohan Shrivastava and Justice Murugan, following a petition by AIADMK Rajya Sabha member I.S. Inbadurai. The court agreed with Advocate General Vijay Narayan that Mr. Nehru could not claim he was denied a fair hearing because he took no action during the 16 days between receiving the court notice on February 4 and the February 20 direction. The court also permitted the State government to withdraw its own review application filed during the previous DMK regime, noting that the DVAC had already registered the FIR on June 5, 2026. Consequently, the judges closed a contempt petition filed against DVAC officials for delays in registering the case.

Background

The investigation stems from a 232-page dossier shared by the Directorate of Enforcement with the Tamil Nadu Director General of Police on October 27, 2025. The ED discovered incriminating materials in April 2025 during searches at premises linked to Mr. Nehru's brother, N. Ravichandran, during a bank fraud case probe. These materials indicated that several crores of rupees moved through hawala channels to fill 2,538 posts of Assistant Engineers, Junior Engineers, and Town Planning Officers in the Municipal Administration and Water Supply department, where bribes ranged from ₹25 lakh to ₹35 lakh per person. Call letters were reportedly shared with candidates before official selections, prompting the earlier Bench to criticise the DVAC for conducting only a preliminary inquiry and to suggest potential action against the 2,538 recruited government servants if the process was found rigged.

Context

Cash-for-jobs allegations typically involve public officials or intermediaries taking illegal payments from job seekers in exchange for securing government employment. Anti-corruption agencies like the DVAC and central bodies like the ED investigate such financial crimes and hawala transactions under laws such as the Prevention of Corruption Act and the Prevention of Money Laundering Act.