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ED registers PMLA case in Rs 100-cr school fraud linked to…

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activeCyber Crime / Digital ArrestTamil Nadu

ED registers PMLA case in Rs 100-cr school fraud linked to ex-DMK min

The Enforcement Directorate (ED) has initiated a money laundering case under the Prevention of Money Laundering Act (PMLA) regarding an alleged Rs 100-crore private school approval fraud in Tamil Nadu. The investigation reportedly involves an individual named BT Arasakumar and a former school education minister belonging to the DMK party, Anbil Mahesh Poyyamozhi. According to reports, the federal agency launched its probe a few weeks prior based on an earlier First Information Report (FIR) filed by the Central Crime Branch (CCB) of the Greater Chennai Police.

State

Tamil Nadu

First reported

October 2026

Agency involved

Enforcement Directorate and Central Crime Branch of Greater Chennai Police

Arrests

BT Arasakumar arrested by police; another accused named Muthukumar reported absconding

Charges or sections cited

Prevention of Money Laundering Act (PMLA) and Prevention of Corruption Act

Status

ED investigation ongoing; primary accused granted default bail in the local police case

The full story

Everything you need to know about this case, in one place.

The allegations stem from a complaint filed by the secretary of the Federation of Associations of Private Schools in Tamil Nadu. It is alleged that the accused heading an unregistered association collected approximately Rs 100 crore from various school managements by falsely promising permanent recognition, school upgradations, and other official clearances, without delivering on the promises or returning the funds.

Following the initial police investigation, the CCB arrested the main individual allegedly linked to the association in June and later detained him under the Goondas Act. Authorities subsequently booked the former minister in September under the Prevention of Corruption Act and conducted multiple searches at properties associated with him and other individuals connected to the case in cities including Chennai, Tiruchy, and Kallakurichi.

Not yet reported: The articles do not specify the exact total number of school managements that fell victim to the alleged fraud.

Where the case stands

The latest position in the reports we read.

The Enforcement Directorate has registered a PMLA case and begun an inquiry, while the primary accused has been granted default bail in the local police case after authorities missed the 90-day filing deadline.

Who was affected

Described in general terms; we do not name victims.

Private school managements in Tamil Nadu who paid large sums of money expecting official approvals and clearances.

Timeline

Key dates as reported, oldest first.

June 27The Central Crime Branch arrested the primary accused linked to the unregistered school association.

July 14The primary accused was detained under the Goondas Act.

September 16The CCB booked the former school education minister under the Prevention of Corruption Act.

TuesdayThe primary accused was granted default bail by a special court after investigators failed to file a final report within 90 days.

Two days after TuesdayThe ED's registration of a PMLA case in the matter came to light.

How the scam worked

The method described in the reports.

An individual operated an unregistered association called the 'Tamil Nadu Private Schools Association'.
Money was collected from private school managements under the guise of securing official approvals.
Promises included obtaining permanent recognition, school upgradations, and DTCP clearances.
The accused allegedly neither fulfilled the promises made to the school managements nor refunded the collected money.

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Sources and further reading

Optional. The full story is above; these are the original reports it was prepared from.

newindianexpress.comOriginal report The New Indian Expressnewindianexpress.com ED registers PMLA case in Rs 100-cr school fraud linked to ex-DMK min - The New Indian ExpressThe New Indian Express · 2 Oct 2026

Prepared by Report Scams, with the help of AI, from the published reports listed above. Check those reports for the latest. Cases here describe allegations. An FIR, arrest or charge is not a finding of guilt. To report a mistake, or to ask for a correction or removal, write to our Grievance Officer. See also the Safe Posting policy.