Former Tamil Nadu school education minister and DMK leader Anbil Mahesh Poyyamozhi was arrested on Monday in connection with an alleged ₹100 crore corruption case involving the granting of recognition and statutory clearances to private schools.
The Greater Chennai Police's Central Crime Branch (CCB) arrested Poyyamozhi shortly after the Madras High Court dismissed his anticipatory bail petition, denying him protection from arrest in the case.
Justice V Lakshminarayanan dismissed the plea on Monday, October 26. The case centres on allegations that money was collected from private school managements in exchange for securing government approvals during Poyyamozhi's tenure as education minister from 2021 to 2026.
Allegations of money collected as party funds
According to the allegations, Poyyamozhi collected money from private school managements under the guise of a "party fund", promising to facilitate permanent recognition, renewals, licences and other administrative clearances.
The investigation stems from a complaint filed by DC Ilangovan, secretary of the Federation of Associations of Private Schools in Tamil Nadu. The complaint alleged that BT Arasukumar, president of the Tamil Nadu Private Schools Association, and other office-bearers collected money from school managements by promising to secure government approvals that were subsequently not delivered.
Investigators have alleged that more than ₹100 crore was collected through the suspected scheme. Reports have identified 177 private schools in connection with the investigation so far, while the broader allegations concern collections from school managements across the state.
The CCB has alleged that the money was collected in the name of party funds and that Poyyamozhi was linked to the process. The case also involves Muthukumar, a former legislator and an office-bearer of the Tamil Nadu Parent-Teacher Association who is described as a close associate of the former minister.
High Court rejects anticipatory bail plea
Poyyamozhi had approached the Madras High Court seeking anticipatory bail to avoid arrest. His counsel argued that he had cooperated with the investigation and that custodial interrogation was unnecessary.
The defence also maintained that there was no direct evidence showing that Poyyamozhi had personally received illegal gratification. The prosecution, however, opposed the plea, arguing that custodial interrogation was necessary to investigate the alleged financial transactions and establish the whereabouts of Muthukumar, who has been reported to be absconding.
The police have also alleged that witnesses discussed money collected from school managements in the name of party funds and assurances that their pending applications would be cleared.
Poyyamozhi had previously appeared before investigators for questioning. Searches were conducted at premises linked to him in Chennai and Tiruchirappalli in September, and investigators also sought financial and other documents as part of the probe.
The former minister has separately approached the High Court seeking to quash the FIR. That petition is distinct from his anticipatory bail plea.
ED launches money laundering investigation
The Enforcement Directorate (ED) has registered a case under the Prevention of Money Laundering Act (PMLA) to investigate the suspected financial trail linked to the alleged scam.
The ED's probe follows the CCB case and seeks to examine the movement and possible use of funds allegedly collected from private schools.
The FIR initially included provisions relating to criminal breach of trust and cheating under the Bharatiya Nyaya Sanhita. Provisions of the Prevention of Corruption Act were subsequently added, and Poyyamozhi was named as an accused.
The allegations remain under investigation. The arrest and dismissal of the anticipatory bail plea do not amount to a finding of guilt.