Tamil Nadu to appeal acquittal in red sand quarrying case, ED tells High Court
The Enforcement Directorate has told the Madras High Court that the Tamil Nadu government plans to appeal the acquittal of former Minister K. Ponmudy, his son and five others in a ₹28.37-crore red sand quarrying case. The acquitted parties are seeking to end related money-laundering proceedings.
The Tamil Nadu government will appeal against the acquittal of former DMK Minister K. Ponmudy, his son Gowtham Sigamani and five others in a ₹28.37-crore red sand quarrying case, the Enforcement Directorate has told the Madras High Court. ED Special Public Prosecutor P.
Sidharthan informed a Division Bench comprising Chief Justice Sushrut Arvind Dharmadhikari and Justice G. Arul Murugan that the State government had written to the agency about its decision to appeal. The Bench directed the prosecutor to file a detailed counter affidavit within two weeks.
The direction came while the court considered writ petitions filed by the acquitted individuals seeking to quash proceedings initiated by the ED under the Prevention of Money Laundering Act. The underlying case was registered by the Villupuram District Crime Branch in 2012. The prosecution alleged that Mr.
Ponmudy, while serving as Minister for Mines and Minerals between 2007 and 2011, conspired to award red sand quarrying licences to his son, his son’s friend, his brother-in-law and others. The charge sheet alleged that the licencees extracted sand beyond permitted quantities without paying seignorage fees. It claimed that the alleged conduct caused a ₹28.37-crore loss to the State exchequer and generated a corresponding wrongful gain.
However, the Villupuram Principal District and Sessions Court acquitted all seven accused on April 2, 2026. According to Mr. Ponmudy’s petition, the trial court found that the prosecution had not established a connection between the quarry leases and an illegal gain or conspiracy.
It also described the alleged revenue-loss figures as speculative and unsupported by primary data. Mr. Ponmudy has argued that, following the acquittal in the alleged predicate offence, the ED cannot continue the money-laundering prosecution.
The related proceedings are pending before a sessions court in Chennai. The High Court has not yet ruled on the petitions.
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