BJP, ED Allege Corruption in Tamil Nadu Ahead of Polls—Accuse DMK Government of Orchestrating ₹800 Crore Cash-for-Jobs Scam

The BJP and AIADMK have accused the DMK-led Tamil Nadu government of orchestrating a ₹800 crore cash-for-jobs scam based on an earlier report by the ED. The allegations come ahead of assembly elections in the state in 2026, and have been refuted by the DMK.
Narendra Modi sitting with M. K. Stalin in an office on 27th September, 2024.
The BJP, based on findings by the Enforcement Directorate, has accused the DMK-led Tamil Nadu government of orchestrating a ₹800 crore cash-for-jobs scam.Prime Minister's Office (GODL-India), GODL-India, via Wikimedia Commons
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Key Points

The BJP and AIADMK have accused the DMK-led Tamil Nadu government of orchestrating a ₹800 crore cash-for-jobs scam.
This is based on an earlier report by the ED, which said it uncovered evidence of the racket in an unrelated raid earlier in 2025.
The DMK has refuted the allegations, asserting that the opposition is trying to defame the party ahead of polls next year.

In the lead up to the Tamil Nadu Assembly Elections 2026, the opposition BJP has hit out against the ruling DMK, accusing the government of orchestrating a ‘massive corruption scandal’.

On Wednesday, 29 October 2025, Tamil Nadu BJP President K Annamalai alleged that MK Stalin’s government had executed a ₹800 crore cash-for-jobs scam in the Municipal Administration and Water Supply (MAWS) Department in 2024. The allegation was based on a dossier submitted to TN Police by the Enforcement Directorate (ED) earlier this year.

BJP and AIADMK Allegations Against DMK

Annamalai asserted that the state government had sold off 2,538 posts in the department for ₹25-35 lakhs each. “Out of 1.12 lakh candidates who applied for 2,538 posts in early 2024, thousands of deserving young people who had studied hard and prepared diligently were denied opportunities because they couldn’t afford the Rs 35 lakh bribe. The DMK government crushed their dreams & aspirations under the weight of its insatiable greed,” he said.

He cited an ED investigation which had revealed “a ‘deep-rooted’ and ‘systemic corruption network’ within the Municipal Administration department.” He said that this pattern of corruption defines the DMK government. He concluded by demanding a judicial probe into the matter to hold the state government responsible.

AIADMK Chief Edappadi K. Palaniswami also joined the attack, saying, “The job racket, orchestrated by Minister K.N. Nehru, his relatives, and select department officials, has converted the sacred process of public recruitment into a money-minting operation.”

He urged TN DGP to register an FIR in the matter so that the ED can take action against the DMK under the Prevention of Money Laundering Act (PMLA).

ED Points to Job Recruitment Scam

The ED raised allegations of corruption against the DMK government in a dossier submitted by the central agency to Tamil Nadu Police. The dossier contained evidence in the form of documents, images, and WhatsApp chats.

It stated that at least 150 of the 2,538 job postings were manipulated. The roles were for assistant engineers, town planning officers, junior engineers, and sanitary inspectors, all appointed by TN CM MK Stalin. It asserted that “certain public servants, and politicians” had collected the bribes and rigged the exam.

The ED submitted its report to the police to have an FIR registered and a probe initiated into the matter. The findings were made during raids conducted by the organisation in a separate case earlier this year.

In early 2025, the CBI had initiated a probe into an alleged bank fraud in Tamil Nadu. Accordingly, the ED took cognizance of the matter. The agency began investigating Chennai-based TRUEDOM EPC India Pvt. Ltd. and True Value Homes (TVH) for fraudulent transactions amounting to ₹30 crore.

Both businesses were linked to TN MAWS Minister KN Nehru. His brother, KN Ravichandran, is a director at TRUEDOM EPC, while his son, Perambalur Arun Nehru, was a director at TVH before the 2024 Lok Sabha Elections. Properties connected to the three were raided by the ED in April 2025. In addition to documents related to transactions, the raid apparently unearthed documents linked to the alleged job recruitment scam.

See Also: Cough Syrup Deaths: ED Raids 7 Locations in Chennai Linked to Sresan Pharma

KN Nehru Reacts to Allegations of Corruption

Nehru is MAWS Minister in the TN government and senior DMK leader who holds a top position in MK Stalin’s cabinet. He rejected the allegations, highlighting the procedures that underlined the recruitment process and charging the ED with trying to ‘defame’ the DMK.

He asserted that his government had conducted the recruitment exam through Anna University, an autonomous and globally recognised institute. “It is well known that Anna University is among the foremost autonomous universities globally and functions independently – it is neither directly nor indirectly under the control of the Municipal Administration Department,” he said in a statement. He added that this very university had conducted recruitment drives under the earlier AIADMK government.

Nehru went on to detail the process: “An exclusive website was launched for the purpose and the department received over 2 lakh applications from eligible candidates for the 2,569 posts. Exams were conducted in 591 centres in 38 districts and the results were published on September 20, 2024. Since the exams were conducted in a transparent manner, there were no objections to the results.”

7,272 shortlisted candidates were interviewed by 13 separate panels which verified their qualifications and certificates. 2,538 applicants were finally accepted based on exam scores and reservation policies. He added that complaints raised against the appointment were cleared by court order in July 2025, after which a final list of appointments was published.

Nehru accused the ED of maligning the DMK after “failing in its efforts by reviving an old case related to a bank fraud.”

“The Enforcement Directorate, under the Union government, has undertaken this political action, unable to accept the historic feat by the Municipal Administration and Water Supply Department, only intending to malign its reputation,” he concluded. [Rh]

Suggested Reading:

Narendra Modi sitting with M. K. Stalin in an office on 27th September, 2024.
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