The case relates to recruitment for 2,538 positions in the Municipal Administration and Water Supply Department. It is alleged that bribes ranging from ₹2.5 million to ₹3.5 million were taken for appointments to these positions.

The Tamil Nadu High Court has given an important decision.

The Madras High Court has directed Tamil Nadu's anti-corruption agency, the DVAC, to file a criminal case against the state's Municipal Administration and Water Supply Minister, KN Nehru, based on information submitted by the Enforcement Directorate (ED), alleging a major racket involving bribery in transfer and posting and commissions in tenders. 

The case involves recruitment for 2,538 posts in the Municipal Administration and Water Supply Department. It is alleged that bribes ranging from ₹2.5 million to ₹3.5 million were taken for appointments to these positions. The ED raided the minister's brother's home during an investigation into a bank fraud case. During the raid, the agency recovered numerous documents, digital records, call letters, and alleged fixed lists, which indicated widespread irregularities in the recruitment process. 

ED had sent complete information to the Tamil Nadu Police

The ED sent this complete information to the Tamil Nadu Police on October 27, 2025, under Section 66(2) of the PMLA. The document is said to be approximately 232 pages long. Two petitions were filed in this case: one a public interest litigation and the other by a Rajya Sabha MP, demanding the registration of an FIR.

In its detailed order, the High Court's division bench (headed by the Chief Justice) stated that if information indicates a cognizable offense, it is mandatory to register an FIR. The police cannot delay the investigation by claiming a lengthy preliminary investigation will be conducted first. According to the Supreme Court's Lalita Kumari decision, an FIR must be registered immediately in such cases. The court clarified that a preliminary investigation is not a mandatory requirement in corruption cases, especially when concrete documents have been submitted by an investigating agency. 

The court directed the Tamil Nadu Directorate of Vigilance and Anti-Corruption to file a criminal case based on the ED report and conduct an impartial investigation. The court also stated that the corruption allegations were serious and could not be limited to a mere departmental inquiry.