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REGISTERED No. D-(D)-72

The Gazette of India

EXTRAORDINARY

PART II — Section 3—Sub section (ii)

PUBLISHED BY AUTHORITY

No. 59] NEW DELHI, TUESDAY, FEBRUARY 3, 1976/MAGHA 14, 1897

Separate paging is given to this Part in order that it may be filed

us a separate compilation

CABINET SECRETARIAT

(Department of Personnel and Administrative Reforms)

NOTIFICATION

New Delhi, the 3rd February 1976

S.O. 74(E).—Whereas the Central Government is of opinion that it is necessary to appoint a Commission of Inquiry for the purpose of making an inquiry into a definite matter of public importance hereinafter specified;

Now therefore, in exercise of the powers conferred by section 3 of the Commissions of Inquiry Act 1952 (60 of 1952), the Central Government hereby appoints a Commission of Inquiry consisting of a single member, namely, Shri Justice R. S. Sarkaria, Judge, Supreme Court of India.

2. The terms of reference of the Commission shall be as follows:—

(a) to inquire into the following allegations, namely:—

to the President.

notification:

(193)

(b) to inquire into any irregularity, impropriety or contravention of law on the

part of any person in relation to referred to in the allegations aforesaid;

(c) to inquire into any other matter which arises from, or is connected with or incidental to, any act, omission or transaction referred to in the allegations aforesaid.

3. The Headquarters of the Commission will be at New Delhi. 4. And whereas the Central Government is or opinion, having regard to the nature of or before the 1st day of February, 1977.

5. And whereas the Central Government is of opinion, having regard to the nature of the inquiry to be made by the Commission and other circumstances of the case, that all the provisions of sub-section (2), sub-section (3), sub-section (4) and sub-section (5) of section 3 of the Commissions of Inquiry Act, 1952 (60 of 1952) should be made appli- cable to the Commission, the Central Government hereby directs, in exercise of the powers conferred by sub-section (1) of the said section 5, that all the provisions of the said sub- sections (2), (3), (4) and (5) of that section shall apply to the Commission.

ANNEXURE

Serial No. 1

Memorandum of Shri M. G. Ramachandran

RETIREMENT FROM MEKALA PICTURES

The Chief Minister was a Partner of Mekala Pictures till 28th February, 1967. is his retirement from Mekala Pictures and the transfer of his rights to his wife Thirumathi Dayalu Ammal and his nephew Thiru Maran, a real transaction or do they only act as benamidars?

It is widely believed that the Partnership interest of Thiru M. Karunanidhi has been transferred to Thirumathi Dayalu Ammal and Thiru Maran without any consideration; without any document, without any version about the true nature of the transaction. It is not as though tho firm has no rights in Pictures produced in the past, right from their first picture "NAAM". The liabilities of the flrm as on 28th February, 1967 have been taken over by Thiru Maran and Thirumathi Dayalu Ammal, The very nature of transfer and inclusion of Thiru Maran as a Partner on the same day of his relinquishing his rights in the flrm Mekala pictures is nothing but an attempt to cover the business transaction in Mekala Pictures with a delicate veil and thread for law courts to believe that the Chief Minister Thiru M. Karunanidhi i" not carrying on any business after becoming a Minister. But, neither the Courts of the land nor the common man who have voted them to Power can be kept in darkness by such colourable efforts The man who holds the highest office of power should not step into the- shoes of expertising ingenuity and the awakened masses are certainly intelligent to tear the veil of the shadow. Truth will one day certainly come. out. It is for him to explain and an enquiry will certainly reveal he waa and is the real head, a seat of directing power behind every one of the operations of Mekala Pictures This fact requires a searching enquiry. The following was the out- standing debts due to the said Mekala Pictures by the Chief Minister:—

Amount (in rupees) As on

2,55,112 31st March, 1967

2,87,112 31st March, 1968

2,77,112 31st March, 1969

2,88,002 31st March, 1971

f l r n!h e

f lt SS The increased borrowings by the Chief Minister from the said firm and the conduct of the J%rt*ersin maintaining a grand silence for tho past five f a rs a^u t outstanding due from the Chief Minister and cwmpoading creditors^of the tan, at tort to the extent of 2.5 lakhs are remaining or made to rrtnain silent and the creditors name 'Shifting into different names are all matters requiring very serious enquiry since it fc proved beyond doubt that the Onef Minister has the real control over the funds of the firm since he transferred the interest in the firm to the Partners >"t for continuation of his business. The name may change, but still the Chief Minister has fine directing power.

JVHuontndum of Siri M. Kalyanasundarmn

Ho has been drawing monies from these concerns even after he became the Minister. The following are the details of debts doe by him to the family concerns according to •Utement of wealth filed by the Chief Minister:—

M i r c h 3 i ,:

Mirch3i, 1968

Mirch3i,

1967

1969

March 31, 1971

Rs.

Rs.

Rs.

Rs.

2,88,022

Atekila Pictures

2,52,112

2,87,112

2,77*112

AwjugMn Pathipakam, Madras (M irasuli')-

47,375

50,725 47,335 47.375

3.02,837

3*24,487 3.35,397

3J 34,447

A Scrutiny of the accounts of these concerns will show that these concerns had no funds from which 'nc could have drawn. They wire in debts. Those who have given loans to the concern^ should be therefore fictitious for the purpose of converting black money into white. It is for him to prove the source of finance for these concerns from which he has drawn such amounts. The following are the outstanding debts due to the said Mekala Pictures by the Chief Minister;—

As on

31st March 1967 31st March 1968 31st M'arch 1969

31st March 1971

Amount Rs. 2,55,112 2,87,112 2,77,112 2,88,002

From the points raised above the association of the Chief Minister with the Mekala Pictures and the purpose for which it has been used are obvious.

Ssrial No. 2

Memorandum of Shri M. G. Ramachandran

ANJUKAM PICTURES

His sustained and continuous interest in the business activities is clearly evidenced by his having moved with great speed and force of power in directing the operations of another film concern Anjukain Pictures, Madras, which is believed to be owned by his son-in-Uw who is not even an Income-tax assesses. The Chief Minister has written the story and dialogues to the picture produced by the slid concern under the title ''PILTAYO PILLAI", The owner of the picture is also the brother of Thiru Maran, M.P. The son-in-law did not have any experience in film production. The first picture produced is in Eastman Colour and the hero of the Picture is the Chief Minister's son Thiru Muthu.

The Distributors have been forced to pay fabulous prices and the mighty arm of power which he has exercised will be fully revealed if an enquiry is made from the Dis- tributors who purchased the picture and tho prices they paid for each area—different areas as such known in film trade. .This will further reveal a closer connection he has with business operation and misuse of power for business interests. Major areas have been bought by sister concerns of East Coast Construction Co,, who have been entrusted with the contract of building the fly-over at Gemini Corner on Mount Road, Madras, by the Go- vernment of Tamil Nadu at a cost of nearly Rs. 4 millions All the Distributors have lost a substantial sum in all the areas. It is believed that Anjukam Pictures have made •a substantial profit of Rs. 10 lakhs. Since> the picture has been sold for all territories -almost at the rate paid for a picture in colour starring Sivaji Ganesan or M. G. Ramachandran, this is a clear manifestation that mighty arm of power has been exercised to swell the profits of Chief Minister and his son for whom this first maiden picture has been produced.

The investment for a colour picture without prints should at least be Rs. 15 lakhs. Tho source of finance to a mystery and since the Chief Minister has taken a role in the production of the picture and his son was the Hero and son-in-law was the Producer, and since further, neither the son nor the son-in-law had any previous background/experience or market credit to raise loans and since no loan* have been received through Bank for production of Picturt, ttw mighty hand of power showed its dark teeth in advancing the cause of the family concern.

Memonmdum of Shri M. Katyuutmndaram

S J * " -. t he £W cf Minister's mflueace and power have been fully exploited. The S.W.'Sr* h° P*° V e? "e n e r o us to o ^r fabulous price for this Aim. One of the c™ ™ fh^M *"? $Ur?**i,tI2B **?? " a contractor for the flyover at Gemini cross on the Mount Road in Madras. All ttae distributors have lost substantially in all

S L ^ ^ J S K f f f i o w S ? ^Jt is taUwedrhIS Aniugam PtoBre"have made & ^rifl/ //o. 3

Memorandum of Shri M. G. RamacfaandraD

J ^ T ^S o °? " "? FARM—BUT DONATION COIMBATORE AGRICULTURAL COLLEGE-SUSPENSION OP OPERATION OF MOTOR VEHICLES ACT/REGISTRA- TION OF VEHICLES

During his world tour the Chief Minister is believed to have visited London where he was received by Mr. and Mrs., Sivasailam of Simpson, It is believed that the Simpsons have an associate concern at London, viz., M/s. Wallace Cartwright, 55/56 St. lames St., London, S.W. I. It is believed that th© said concern paid for the purchase of modern tractor from M/s. Massey Ferguson, London. However, public had been made to be- lieve that it is gift by Massey Ferguson, London, to Tamil Nadu. Is it within the rights of the State Chief Minister to accept presents from foreign companies without the con- sent from the Government? Such a practice will lead to serious depletion of nation's wealth, since what is advertised to be a present may bei depletion of nation's foreign ex- change through non-banking channels.

The said Tractor bearing chasis No. O1/16629J/015/UAO, Engine No, 22990D was imported under Bill of Entry D/1705, dated 30th April, 1971 per **S. S. Clan Maclean" against customers clearance permit No. C/J/2335228/N/NM/37'/H/31.-32, dated 24th December, 1970 and cleared by Sri Rama Vilas Customers House Agents was not regis- tered with D. C. i Traffic and Licensing, Madras. The Customs Cleiranco Permit appears to have been issued by I.C.C.L, Madras, as could be seen from the fact that one Muthukumaraswaml Gounder of Karattupalayam, Thondamuthur post, Coimbatore District had also imported one tractor bearing No. 164829/Efigine No. 151 US 22775D against Import Licence bearing No. P/S/2332587/N/MN/H/31-32 dated 20th January. 1971. This tractor has been registered with R.T.O., Coimbatoro against TNC-489, dated 18th June, 1971., But the tractor imported against C.C.P. No. C/J/2335227 dated 24th December, 1970 has been resigstered with the R.T.O., Coimhatore against T.N.C, 2798 dated 8th May, 1972. The entries show that the vehicles were inspected by the Motor Vehicles Inspector L.V.S. Vasart on 8th May, 1972. This registration is shown as a new one but it has not been mentioned that this was an imported tractor whereas the tractor standing in the name of Muthukumaraswami Gounder is shown as an imported tractor. Tn the latter case the Import Licence number is also shown in the R.C. W- "" Chasis number of the Tractor imported under C.C.P. " shown .as ^ i " * *" ^^

ftSSm™t"p™r ""t ,mm. From thc Wormrto. to e"Ii"d, " w j "" *J

STRT-oTcStaibatow. Thi, inference ttanda to reason from the fact rint-

(2) if it were to be so, there is no reason why it was not sljown. M an imported

tractor offered for new registration; and

(3) Why should it be made circulated in papers that it was an AWARD made by

TAPE, Madras,

It all smells a rat, This warrants an intensive enquiry in the Tanjore D.T.H. and Tanjore

To what extent this tractor was utilised in the Farm of CM.? The people in Tanjore are aware of moving of this tractor in C.M's Farm Land.

Serial No. 4

Memorandum of Shri M. C. Ramachandran

HOUSE AT GOFALAPURAM BEARING NO. 7-A, 1VTH STREET.

The admission by the Chief Minister in the Wealth Statement is that ho spem only Rs. 15,000 for improvements up to 31st December, 1966, but subsequent extensions, improvements, air-conditioning are believed to have been done by leading firm ot con- tractora said to bo very close to the Chief Minister at a cost of Rs. 70,000 to Rs. 1,00,000. No doubt, the Madras Corporation is under their control. He might or might not have submitted the plans of additions and alterations, for approval, but nevertheless he snould account for such extension, improvements and air-conditioning and other installations. It is the duty of the Chief Minister to explain the ascendency of his wealth the gl mour cast by improvements to his house and the modem comfortable installations to such house property.

'

Purchase of No. 2. Gopalapuram FVth Street house for Rs. 50,000—Sources: it is

stated in the Wealth Statement that the source of purchase of the said house waa—

Rs. 5,000 from sale of car MSR 1335 Rs. 45*,000 borrowed from Mekala Pictures

Rs. 50,000

This property has been purchased after assumption of high office of power as a Minister. It is pertinent to note that as on 31st March, 1967 as per Wealth Statement he owned Mekala Pictures, Madras, Rs. 2,52,112 as on 31st March, 1968 owned Rs, 2,87,112. The increase in the amount due by him to the firm is only Rs. 35,000/-. The balance of consideration of Rs. 10,000/- and cost of stamp duty and charges which will not be less than Rs. 5,000 have not been explained in, the Wealth Statement field. The most striking feature is that a* against the purchase consideration, the sum of Rs. 45,000 is drawn as loan from the firm Mekala Pictures which is but a shndow even though the title to Partnership interest is colourably reflected in the name of his wife and Thiru Maran. It requires no further logic and reason that since the Chief Minister transferred his interest in the concern Mekala Pictures to his wife and Thiru Miran with- out consideration, without any document, without any admission of the circumstances for transferring interest in the manner he has dona.

How far and to what extent are the accounts of Mekala Pictures regular? How did they account in their books for the advance of Rs. 45,000? If it is really a distinct entity absolutely unconnected with the influence and office of power it is for them to explain why they advanced the sum of Rs. 45,000 to the Chief Minitser, when as on 31st March, 1971 he already owed them Rs. 2,52,112. Moreover, the balance sheet of the firm since its inception in 1955 will clearly show that all through they were 'borrowing, and even as on date of purchase of property by the Chief Minister on 24th January, 1968 for Rs. 50,000 the said Mekala Pictures was greatly in debts to others. It again throws a new light on the hiehest abuse of power that the creditors of the firm have remained silent, when the Chief Minister used the firm as a conduit p}p" for improving his wealth. No great evidence is necessary to clearly hold that Mekala Pictures was but a shadow of Chief Minister, Memorandum of Shri M. Kalyanasujidaram

IMMOVABLE PROPERTIFS OF THE CHIEF MINISTER

(i) The Chief Minister's residence in located in his owrv house at Gopaiarmram Madras 14, This building has atmured a complete face-lift after Mr. Kaninanidhi h"' become the Chtef Minister Extensive improvements, extensions have been mode anc

air-conditioning has also been done. It is worthy of investigating aa to how much money was ?pent on it and who was the donor. It is also necessary to investigate as to whether the Town Planning Authorities were notified about these additions, alterations and improve- ments to tffis house and if the house-tax due to the Corporation wa" proportionately lncrcAAcc* '

(ii) There is another house at No. 2, Gopalapuram Fourth Street Madras This hai been purchased in the name of Mr. Karunanidhi when he was the Public Works Minister in 1968. For the purchase of this house, Mr. Karunanidhi claims to have drawn a sum of Rs. 45,000 from the firm of Messers Mekala Pictures. Acquisition of this property also appears to have absorbed a portion of the ill-gotten wealth. In this consectionT the transactions of Mekala Pictures also bring to light bogus nature of the said firm's credi- tors. If they were real creditors of the firm, would¹ they be idle spectators when the money is drawn from the firm by the Chief Minister for the purchase of property or wrfl the partners of the firm (if they were really genuine, distinct and different from the Chief Minister) take a dose of sleeping pills.

Serial No. 5.

Memorandum of Shri M. G. Ramachandran!

ANIUKAM PATHlPPAGAM

In his declaration to Assembly on 9th January 1970 and 14th December 1971 he has given the balance of loan due from him to the above firm as under:—

.. 56,725

.. 47,335

31st March 1967 31st March 1968 31at March 1969 31st March 1971

.. 47,335

.. 47,335

On 28t'h February 1967 ho has retired from the firm. This concern runs a daily called "MURASOLI". The increase in circulation and the official patronage will be very clear from the fact th'at Government and Quasi Government. Corporations Municipalities, Pan- chayats, High School and Libraries are directed to purchase the daily of Party Organ. This will be very clear from the date of subscription prior to 31st December 1966 and after 31st December 1966 and particulars after 5th March 1969 by which date Thiru Karutfani- dhi assumed the highest office of Chief Minister. The periodical Malar issued (i.e.. the special editions) will clearly reveal abutoe of official power in procuring very huge adver- tisements. It is no wonder that the said firm keeps the debt due from the Chief Minister since the firm's partners are but the sh'adow of the Chief Minister. Thirumathi Dayalu Ammal, wife of Chief Minister is a partner in Anjukam Pathippagam. Her capital is only Rs. 5,000 and she has drawn the entire capital and much more than the capital. Actually she remains only in thej name of a Partner.

The other Partner Thiru Maran is but a spokesman of the Chief Minister. A scrutiny of the accounts of the firm will reveal the smallness of t'he capital before 31st December 1966. It will further reveal how the firm mobilised liquidity in different methods. All these increase in assets have been clearly done by only the abuse of power.

Anjukam Pathippagam continued to be the re-concern of Chief Minister. He owned ifte Press as his personal right. He first transferred the riaht to his wife and Thiru Maran without any consideration. Then all the family concerns, Mekala Pictures, Anjukam Pictur** and Anjukam Pathippafiam continued to enjov the patronage of Chief Minister and use of his office for financial benefit of his family, kith and kin.

The building where MIJRASOO office is situated in Mount Rtfad and the building ad- jacent to it have been purchased after 31st December 1966, and there is a proposal to demolish and build a new huge multi-storeyed building. The consideration for purchase of the properties ideally located in Mount Road should normally be very high and an enquiry into the circumsiances and source for purchase of these TJTOperties will be verv necessary and the sama will rip open the hidden secrets and wealth of the Chief Minister and hia family.

Memorandum of Shri M. Kalyanasundaram

AN JUG AM PATHIPAGAM

The Chief Minister Shri M. Karunanidhi was the sole proprietor of Messere Aniugam Pathipagam till 28th February 1967. This concern published a daily called "Murasoli" of which Mr. Karunanidhi was the Editor for a very lon.c lime. Even today the said paper

Murasoli is the mouthpiece of Mr. Karunanidhi and his Government. Mr. Maran, M.P- who is the brother-in-law of Mr. Karunanidhi is the present editor of Murasoli. The tram- fer of his interest by Shri Kaninanidhi in the said Anjugam Pathipagam in the name of bis wife Smt. Dayalu Animal and his brother-in-law Shri Maran, M.P. very formal. It is not real as no consideration seems to 'nave either been claimed or paid. This Murasoli is priviledged to get Government advertisements. Panchayat Union Presidents 'and Union officials are utilised for the sale and promotion of Murasoli. All Government departments, Panchayat Union reading roornls, libraries, etc., are compelled to subscribe to Murasoli- Its circulation and flnanci'al stability arc entirely dependent on the Chief Minister's influence. A comparison of the accounts and circulation figures of Murasoli before Mr. Karunanidhi became, a Minister and after that will clearly reveal that official position has been fully utilised for the promotion of the interest of Anjuffam Pai'hipagam.

The Chief Minister's connections with big business in Tamil Nadu has been fully utilised for enriching the advertisement revenue of Murasoli in several Malars (special issues) speci- ally brought out for that purpose, It is relevant to examine whether the asses* and liabili- ties of this Anjugam Pathipagam 'are commensurate wiih the present influence of the Said paper Murasoli or out of proportion too high. It appears that a site in Mount Road, Madras 'has been acquired for housing the said Anjugam Pathipag'am and Murasoli offices. It is alleged that the document value of the said site has been highly undervalued to convert the black money into physical asset. It is no wonder Mr. Maran has acquired the prefix "Murasoli Maran".

Serial No. 6

Memorandum of Shri M. G. Ramachandran

SON'S HOUSE AT TIRUVARUR

His son's house at Tiruvarur has been substantially improved at a high cost, How could the sons, who are dependents upon their father, find source for the construction when (hey are not even income-tax assessees? This property is situated at 94, South ^ ^ J ^ ^Z rur Thanjavur District. It was purchased on 23rd March 1947 for Rs. 2,500 and; settled on 5th September 1951 for the lifetime of his mother Anjuham Ammal sm"e dead, and thereafter his sons. The Chief Minister has not admitted in the Wealth Statement filed, the other son who b even according to him dependent on him. This property is ctearly declared, by ttw Chief Minister as the property of the sons as on 31st March 1968, The sons acquired the property by settlement, on the death of tteir grandmother. B 19 not the case of the Chief Minister that he inherits any other asset from his mother. That being so. how could these sons build extensions and improvements at huge cost? The source for tWS construction has its direct routes to the Chief Minister and this is but a clear case of high abuse of office and warrants an enquiry.

Serial No. 7

Memorandum of Shri M. G. Ramachandran

THIRUMATHI DHARMA

Thirumafhi Dharma resides at No. 9, First Cross Road Madras-28. She " " °, an In- cometax Assessee. A permanent police security is polsted since Thiru Kanntemdni assum X f f l ^e as P T D. Minister on 28th February 1967. Even today security police contmue*.

She is protected also by an independent unofficial security personnel by name Thiru

Kapali who also looks after the household.

Before becoming P.W.D. Minister, Thiru Karunanidhi was staging a play called "KAKrfrlA POO'? (Paper Flower). In that drama, Thiru Karunanidhi w"s the hero a al t h ^ s a i d ^ m a t bi Dharma was the heroine. Her house is not dec^red by Chief Minister as his property either before the Assembly or before the tax autnorities.

house also every day.

t i ^ L , , ™A hnuae. as the Police act as security outside the house.

Memorandum of Shri M. Kalyanosundaram

SMT. DHARMAMBAL

There is one Smt. Dharmambal residing at No. 9, First Cross Road, Madras-28. There are ample evidences to show that she is a member of the Chief Minister's family. The very fact that a permanent police guard is posted outside her house shows the frequency of the visfets of Chief Minister to her house. There is also another person by the name Kapali acting as attendant of Smt. Dhannambal and the said Kapali is said to bo a, close confident of the Chief Minister. Smt. Dharmambal has acted in the role of the heroine with Mr. Karunanidhi in his famous play Kaitha Poo (Paper Flower). There are valued properties in the name of t'nis Smt. Dharmambal and her attendant, all of which have been acquired through her intimacy with the Chief Minister. The attendant Kapali who has no olher source of livelihood or earning is now plying several taxies. How Smt. Dharmambal and her attendant Shri Kapali have acquired properties and taxies requires to be investigated as they are persons very closely connected with the Chief Minister.

Serial No. 8

Memorandum of Shri M. G. Ramachandran

THIRU AMIRTHAM/NEPHEW

It is believed that Thiru Amirtham, nephew of Mr. Karunanidhi purchased a property very near the bouse of th: Chief Minister at a cost of not less than Rs, 70,000. II:j3_a new house called "KALINGYER IIXAM". Thi/u Amirtham te not an income-tax ^swaee. Ho has no previous source of income, business or highly paid profession or vocat.on. Thl" property was purchased after Thin, Karunanidhi became Chief Minister It is a so believed thai Toini Amirtham has b *n introduced in the film business of Anjukam Pictures wh.ch released its first picture only on 22nd June, 1972.

Memorandum of Shri M. Kalyanasundaram

There is another houSe in Gopalapuram called "Kalaiyngar Mam" purchased in the name of Mr Amirtham who is another nephew of the Chief Minister. Th0 said hou^c * stated to have b £n Z c L ed for R*. 70,000. It is worth investigating whether full value of the propmy h"s been accounted for, whether the real value of the property * "& Rs 70000 and even if it were to be so how this amount.was found by Mr. AxnMham- Ali thete are mysteries. The said nephew Mr. Amirtham is nothing but a benamidar for the family of the Chief Minister.

Serial No. 9

Memorandum of Shri M. G. Ramachandran

THIRU VAIDYALINGAM, PA. TO CHIEF MINISTER

Som, of the acts of Thiru Vaidaylingam revealing his interference in the administration

with the knowledge of the Chief Minister arc s u n d e r :-

One Thiru ^^^^^o^^^^l^Ji^^n^

S a X ^ ft ^ i T K iS Seeding MZVJS^ A^tax in foodgram*. Thw will be touno m in V ^ i^ Vaidyalingam. Persrmnel

%^"^*&"trJ^£to>M -c. liabilities to Revenue Board

as he ought to.

wealth statements, -which was n i t^^ r= \£ i n t e e r i ty of t he officer was impeached on K MS A - S ^ / o ' i ef K s ^ h ^ iV UT-es of hi, Private Secretary.

i i t t\y* inierfcr-nce of T h i ru VaidValmRam w i th C o l-

in p r o p e r ty An enqii-ry. .t o t he w^ h i ns ^^ c o n c e a l rd w c a th he bw

Ghicf Minister and the orden" have been issued by him under instructions of the Chief Minister. Honest, high officials are sacked. A senior Officer acting as Private Secretary, even when questioned in the Assembly contrary of power majority has clearly given inspi- ration to Chief Minister to disrespect ths opposition and treat them as just elected only to complain, but not lo be respscted. The great mystery of protection to Vaidyalingatn is the greatest tragedy in democracy and the people of Tamil Nadu have started to revolt against corruption. The people are on the war path. This is the greatest movement against official interference, corruption and oppression by bureaucracy. Such a movement has never been witnessed either before Independence or thereafter. Henco a clear case for enquiry is the crying demand by the people.

Memorandum of Shri M. Kalyanasundaram

CHIEF MINISTER'S CONNECTION WITH AND ENCOURAGEMENT TO CORRUPT OFFICIALS

One Mr. Vaidyalingam who Was private secretary to the Chief Minister was recently kicked up to a higher post from that of Private Secretary to Chief Minister due to public pressure. What wers the reasons behind this transfer and promotion'/ He wap picked up by Mr Karunanidhi when he was Minister in charge of Motor Vehicles Act Administration, when Mr. Vaidyalingam was only 'a Regional Transport Officer, He was a close accom- plice of the Chief Minister in all acts! of commission and omission.

Allegations against this Mr, Vaidyalingam have been made sp?ciflcally both on tho floor of the State Assembly and in public and in spite of all these he has been kicked up- stairs- to a higher post by the Chief Minister. He has not even filed his statement of wealth in spite of many reminders from the Revenue Board. There are very serious allegations against this officer whom the Chief Minister has been shielding. He has acquired several valuable properties including a big house at Anna, Nagar, Madras. How he has become so rich and the reasons for his close association with the Chief Minister and why the Chief Minister has always besn and is shielding this corrupt officer are matters to be investigated thoroughly.

Serial No. 10

Memorandum of Shri M. G. Ramachandran

VEERANAM PROIECT

The Government has accorded sanctions for the Project for augmenting Madras City Water Supply by 40 million gallons per day from Veeranam Tank. The estimated cost is RJS. 21.30 crores. An enquiry will have to be made into the expenditure of this project, the association of Ministers with the Contractors, M/s. Sathyanarayana Bros. On 7th May 1970 the tender of M/s. Sathyanarayana Bros, was accepted by the final processing of the Additional Chief Secretary over-looking the Chief Secretary, Thiru Royappa.

Contrary to G.O No. 2801 (Public) Special Department dated 13th November 1969- the Additional Chief Secretary is not equivalent to Chief Secretary and he could not withdraw the flic of Chief Secretary and put up notes for approval of tinders of Sathyanarayana Bros This conduct is highly schocking and it was not as though it was an act in emergency. Tne only emergency was to accept the tender of M/s. Sathyanarayana Bros. Moreover the emergency acceptance of this tender is only to advance a sum of Rs. 90 lakhs as loan to Sathyanarayana Bros. cv;n at tho tentative stage of acceptance of tender. Such a huge advance of nearly Rs. 90 lakhs at the embrionic stage of accepting the tender in principle, is ft vcrv extraordinary act, and this huge contract is under the administration of Minister for Works, Mr. Sadiq Pasha who has also approved the Act with the concurrence of the Chief Minister.

To vest with (he Minister a power to accept the tender without due processing by Department an extraordinarv ordrr was issued in G.O. Ms No 2, Public Works Depart- ment datcl 2nd January 1970 suspending all previous orders since the dawn of Indepen- dence on the subject of accepting the tender This G O. vested with tho Chief Minister the power of accepting the tender from the Chief Engineer. The withdrawal_ of the power from the Chief Engin^r 'nd vesting of the power with the Chief Minister is nothing but an act of vesting with the Chief Minister dictatorial power.

Becoming a rhief Minister woi'M not make n^m an cTtiert in engineering 5I0II nor Is the Chief Engineer without any knowledge or skill. Tn spite of the fact that this con- tract is for a huee "..m ,0 Rs " ™r?s r— Ww^t contract iinm the birth of J"Ac^ taw the act of the Chief Minister certainly defames even Mohomed Bin Thugiak, The people of Tamil Nadu arc infuriated by these acts of mai administration patronage.

fondering of established rules democratic institutions and usurpation of powers by Chief

Minister, rejecting established tradition since Independence without any rhyme or reasoii-

Serial No. 11

Memorandum of SUrl M. G. Rawchandnn

THIRU ANBIL DHARMALINGAM

Thiru Anbil Dharmaiingam, Minister, hails from a village ANBIL in Tiruchirapalli District. For th" past 25 ycara, he was only living with Thiru Kasthuri Chettiar, B. Com. Hons. and his' brother Thiru Pandurangam, in the house just opposite to Raja Talkies, Tiruchirapalli. It is generally known as Nathan Press. Before the D.M.K. came to power in 1967, the group of Thiru Pandurangam, Kasthuri and Anbil Dharmalinguio were not affluent. Of course, Nathan Press was ini existence and another conctrn of manufacturing bricks at Anbil was also in existence.

A new firm known as Nathan Publication was started after formation of D.M.K. Ministry. The Government took over the rights to publish books for the schools. Nathan publications wer" appointed as sole distributors of school books. Scarcity of boots was created and the children going to elementary schools had to pay a premium over the listed price. The Nathan Press group had no previous experience in the book publication. This is just one instance of open participation in advancement of activities of Nathan Press group by Thiru Anbil Dharmalingam.

Thiru Dh'armalingam's portfolio was once taken away and given back within months by Chief Minister. Ho was forced to resign and has been taken back by the Chief Minister. This shifting of portfolio, resignation and re-appointment is not merely a staged political drama, but hidden truth is the battle between the Ruling Ministers ovet the share of the spoils.

A sum of Rs. 4.5 lakhs has been seized from Ponni Enterprises on 23rd October 1972. Thiru S. A. Muruganandam, M.P., has published in the Press Statements exposing the corruption of the Ministers. Booklets have been printed and issued to the public.

Thiru Anbil Dharmalinsam is the Minister for Agriculture and highly startling facts have come to the knowledge of public about his close activities granting aerial spraying contract* to the Indian Agricultural Aviation Association, Bombay, through Anbil Dharma- lingam's shadow and benami-Ponni Enterprises. The extent of lands subjected to spraying were:—

Year Area covered

                                                                         Expenditure incurred
                                                 (in  lakhs of acres)    in lakhs of Rs.
1968-69  .                                    .   2-870                  50-77  lakhs
1969-70  .                                    .   I-860                  28-775  lakhs.
1970-71  .                                    •   6'974                  correct figures to  be
                                                                            ascertained  .
1971-72  .                                    .   9-804                  103-857  lakhs.
Rate  of  spraying  charges  for  wing  aircraft  and  helicopter  were  as  under:—
               Year.                              Aircraft.

Helicopter.

Rs.

Rs.

8 p;r acre

. . ..

1968-69 . 1969-70 1970-71 • r97i-72 .

7 p;r acre. . S p;r acre

10 per acre 5-98 per acre 9 p;r acre. 11 p ;t acre.

The concern Ponni Enterprises is said to be a shadow of Thiru Anbil Dharmalingnm, consisting of partners:

(1) Rajagopal. (2) Babu. (3) N. Jayaraman.

Tho three persons have no previous credit worthiness of business standing to negotiate terms with an Aviation Spraying Combine group. When was this Ponni Enterprises formed? How did they get the contract? If an enquiry is instituted, it will clearly reveal that this same concern earned huge profits in account and also outside the account with- out capital, These persons have no standing to get one Tamilian to introduce them to Bank They opened accounts in Indian Overseas Bank, Esplanade Branch, where they have been introduced by Thiru Chandi Prasad Khemka residing at No. 9, Vth Street, Rutland

Gate, Madras, who is incidentally Joint Managing Director of Khemka Co., and Director etf Khemfca Aviation Private, Ltd., Delhi. This Aviation Company i" also a Member of tW Indian Agricultural Aviation Association who executed the contract for spraying in Tamil Nadu with M/s. Ponni Enterprises as their Agents. The Agent's powers and duties are to collect the spraying charges from Panchayat Union and District Agricultural Officers and forwarded them to the Bombay Aviation Association. The most important function of Ponni Enterprises is to make Panchayat Unions to pass resolutions for Aerial Spraying. This is done with the knowledge of the Chief Minister and Thiru Anbil Dharmalingam. It is the Government's duty to save the public money by calling for competitive tenders. It is their duty to ascertain from Panchayat Unions the extent of acreage to be sprayed and also the duty of the Government to collect money from Pancha- yat and pay it to Aviation Companies. The need for a middle man Ponni Enterprises is one of the moderns operandi of the D.M.K. Government to collect commission from con- tractors in account and outside the account.

Ponni Enterprises has filed a suit before High Court of Madras for recovery of Com- mission in respect of the Commission due from Aviation Companies for spraying done in 1971-72, The suit is filed for recovery of commission of Rs. 3,99,440 at 80 paise on 4,99,300 acres. They have also obtained an attachment b-fore judgment on 6th January 1972. The public are shocked to learn that Aviation Companies paid commission very promptly in. all the previous years. The rift between the shadow and aviation company is believed to a dispute about the un-accountcd commission claimed from the Bombay Aviation Combine. This huge scandal has infuriated the peasants and agriculturists of Tamil Nadu. They have not forgotten the shootings and the- terror unleashed against them during the Fanners' Agitation resisting against increase in power-rate for agriculture. The peasant* hav6 risen in revolt during the past two weeks and they are demanding open enquiry against these scandals—misuse of office and the ministerial corruption.

Memorandum of Shri M. Kalyanaanndaram

Mr. Anhil Dharmalingam.—The following charges are levelled against the Minister for Agriculture Mr. Anbil Dharmalingam :—

(a) Appointment of Messrs Nathan Publications, the partners of which were and are the benefactors of Shri Anbil Aharmalingam for the past twenty-five years, as Agent for Government Text Books.

(b) Mr. Anbil Dharmalingam has close connections with the partners of a firm called Ponni Enterprises. The said firm was appointed as Agents for Airline Companies engaged in aerial spray of chemicals and fertilisers over agri- cultural lands. Huge sums of money to the tune of several lakhs was earned by the said firm as commission from such Aerial Aviation Companies both in account and outside account in cash. On 23rd October, 1972 a raid was conducted and a sum of Rs. 4.5 lakhs has been seized from the said firm. Mr. Anbil Dharmalingam** association with the Partners of the said firm, the circumstances under which the said firm was appointed, as Agent*, the exact nature of services rendered by them, the justification for the Aviation Companies to pay huge sum as Commission, the real consideration fox such payment, whether the rate per acre of aerial spray was fixed by the Aviation Companies keeping the Commission in view and if so the extent of loss to the public exchequer are all matters warranting serious investigation.

Serial No. 12

Memorandum of Shri M. C. Ramachandamn

WATER BOARD CHAIRMAN—TIRU KANDAPPAN, M.L.A.

In the declaration of wealth filed by him for the year ending 31st March 1971, before

Legislative Assembly, he has declared as under:

"Net cash of Rs. 35,000 constituting the total income over a period of time

inclusive of the cash bequeathed to me by my father—Rs. 35,000".

If his income-tax records are verified, the peculiar statement, he has made may proved as false. Moreover he is a very close friend of Chief Minister, who has appointed him as Chairman of Water Board which processes the Veeranam Project.

Thiru S, Kandappan used his influence over the Chief Minister and got a loan of Rs. 1.75 lakhs from Tamil Nadu Industrial Investment Corporation for his father-in-law Raivsaswami Gounder at Tiruchengode who made the application to T.I.I.C for the loan to start an industry. No industry was started and money has been misappropriated for opening arrack shops. The T.I.I.C. Inspector reported this. The Chief Minister has

directed the matter to lie over and the Industries Minister has fully co-operated with Thiru Kandappan to get the loan for Thiru Rangaswamy Gounder and Kandappan combine The people of Tiruchcngode are known for their patriotic tradition. Now they have risen in revolt and are demanding action against Thiru Kandappan. Unless an enquiry is immediately ordered, the people will try him in people's court. Serial No. 13

Memorandum of Shri M. G. Ramachandran

J.K.K. ANGAPPA CHETTIAR GROUP

A petition filed by a patriot to take action against this group for evasion of sales tax of Rs. 7 lakhs was suppressed by the Minister Thini P. U. Shanrnugham. This gepup acquired Import Licence worth Rs. 80 lakhs under the Fabrics Export Promotion Scheme from 1st April 1961 to 31st March 1967. They had four family concerns, and ten benami conceirns. The imported yarn plus customs duty, landed cost, etc., against this RS. 80 lakhs lience will be in the order of Rs. 1.50 crores. The sale value" must be not less than Rs. 2.50 crores. They filed writ petition in Madras High Court that they brought Nylon Yam from Bombay obtained by import and manufactured them as handloom sarces and got stay against levy of sales tax. They succeeded.

They filed a return for Sales Tax in the name of a concern called Angappan & Co. and paid a sales tax of Rs, 7,00,000 and a penalty of Rs. 4,000. The group filed an appeal against this levy as amock appeal which was dismissed as time barred.

When the patriot questioned the Minister for non-collection of Rs. 7,00,000 as sales' tax and Rs. 7,00,000 as penalty, the Minister has directed the Department to send a reply that everything has been done.

The people of Komarapalayam are aware that Thiru P.U. Shanmugham very often visits the house of this group and the Chief Minister whenever he is in Salem and Coimbatore districts travels in their air-conditioned car.

The way the Chief Minister and Thiru P. U. Shanmugham have quietly suppressed the fact of false affidavit filed by this group in the High Court and the way they have chosen to let th^m off with such a nominal petty levy of sales tax on an unregistered and unknown so called firm, probably created only for the purpose of bearing this nominal throw away levy of sales tax even though the said firm had no pirt in the import of Nylon yarn and the. very surprising weaving of Nylon yarn in handlooms and their silence even after issue of Press statement by Thiru S. U. Muruganandam, M.P. on 23rd October 1972 exposing this scandal clearly makes out the case of the Chief Minister and Thiru P. U Shanmugham 'wfcre' fully involved in motet shady collusion to deprive the Slate Exchequer of the huge revenue of Rs. 14 lakhs.

Memorandum of Shri M. Kalyanasimdarnm

CHARGE AGAINST SHRI P. U. SHANMUGAM, MINISTER

Shri P. U. Shanmugam, Minister in charge of Sales-tax Administration in Tamil Nadu is a close friend of a wealthy industrial and business family of Komarapalayam in Tamil Nadu State known as J.K.K. Angappan Group. The said group expertised in bogus exports, obtaining of import licences against such bogus exports, selling of such import licences at huge premium in Bombay. They were given licences of the value of Rs. 80 lakhs for the import of Art Silk yarn The value of imported art silk yarn including Customs duty, landed cost, etc., was in the order of Rs. 1.5 crores and the sale value was in the order of Rs. 2.50 crores.

They did not pay a single pie as sales-tax on their own on these transactions. This group had so much courage as to even file an affidavit in the High Court stating that they transported art silk yarn to Komarapalayam, got them converted into cloth on handlooms and the handloom cloth being exempt from sales-tax, they were not liable to sales-tax. They got away with the same. However, about three years back tho falsity of the affidavit and the impossibility of weavinn art-silk in Handlooms and as such non-availability of #Kemption and con. S E ^ H H )] THE GAZETTE OF INDIA EXTRAORDINARY 205

Strtal No. 14

Memorandum of Shri M. G. Ramachandran

SAMAYANAI. LUR POWER STATION

Worth Rs. 110.00 lakhs—Sold for Rs. 58.00 lakhs—By O. P. Raman, Minister of Elec- incity. under instructions by Chief Minister—In spite of acut" power shortage affecting the Tamil Nadu and the Industries, a dark game of corrupt bargain was made behind the screen, without correct procedure. The entire Samayanallur Power Station was dismantled and- sold for Rs. 58.00 lakhs. Ths purchaser is believid to have realised so far Rs. 80.00 lakhs ami still he has got stocks worth Ra. 25.00 lakhs. Selling public property for filling the-pockets of Ministers will be fully evidenced on an enquiry.

Serial No. 15

Memorandum of Shri M. G. Ramachandran

LAND FOR NEW GLOBE THEATRE

Mr. Varadaraja Plllai, lessee of the land ii from Salem and an old associate of the Dravida Kazhagam for the past 30 years. He had this land on lease. The Ministry has brought an enactment to make the lessee the owner. This law is dearly passed only to enrich the party bosses. The benefit that has passed on to the Ministers m thia deal believed to be substantial and the extent of the same will be obvious on an enquiry.

Serial No, 16

Memorandum of Shri M. G. Ramachandran

MUD FOR OFFICERS AND MONEY FOR MINISTERS

Mr. Cherian, Editor of Broadway Times, was black mailing the District Collector's, for approval of his books for prescribing the same as School Text Books and was publisJoing malicious and scandalous stories against Officers who declined to comply with his request. Mr. T. A. Verghese, I.C.S., Ex-Chief Secretary "nd his son, Shri Anthony, I.A.9., the then Collector of Thanjavur, were also subjected to malicious and false allegations that an Import permit of a foreign car was tampered with at the instance of Mr, Vergese, At the written complaint of Mr. Verghese, I.C.S., the Government ordered for the prosecution of Mr. Cherian after approval by the then Education Secretary, Chief Secretary Education Minister and the Chief Minister (Mr. Karunaaidhi) and he was (Mr. Cherian) black listed for five years. This order was subsequently cancelled by the Chief Minister for obviousi reasons and the close connections cleverly developed by Mr. Cherian with the Chief Minis- ter's nephew Mr, Maran. M.P., aiKl the said Mr. Cherian was the Election Agent of Mr. Maran, M.P.

Tho Chief Minister, Mr. Karunanidhi, kept most of the corrupt officials in key posts so as to fill up his coffers. For instance, Thiru P. K. Nambiar, I.A.S., of ManaJi Scandal and U. P. Potatoes SCandal (reference P.A.C: Report and Assembly Proceedings) wai appointed in a Key post as Land Revenue Commissicmer, Board of Revenue, in charge of all District Collectors.

Thiru Pasupathy who was caught red-handed for burning Government records as Secretary, Board of Revenue and punished for the said offence, by stoppage of increments, was promoted and posted as Secretary, Revenue in charge of the Revenue Administration of the State which is the backbone of the entire State Administration.

One of the worst and corrupt officers, Thiru Vadyalingam, the then Private Secretary of the Chief Minister, M. Karunanidhi, was promoted as I A S. Officer and placed as Depuly Secretory, Public Department the most vital post in the Secretariat, next to Chief Secretary.

Serial No. 17

Memarapdwn of Shri M. G. Ramachandran

SUGAR SCANDAL

The Chief Minister got the rights for releasing of sugar hags from private sugar mills. The Chief Minister and Food Minister, P. U. Shanmugam, demanded Rs. 2 to Rs. 3 per ban of euaar released and collected a sum estimated at over Rs. 50.00 lak'ns, through a leadiM Hour Mill Industrialist of Madras, Much of the dislike of the Chief Minister, Messw Parry and Co. Ltd., under the Chairmanship of Mr. H. V. R. lyengar, Ex-Oovernor

of Reserve flank of India resisted initially the payment of Rs. 2 to Rs, 3 n=r bag and H" ensuing struggle resulted in the exit of an able Chairman since about Rs. 100 laths wort* of sugar bags not accumulated in the godowns for want of release orders for which bush money was not forthcoming from them.

Memorandum of Start M, Kalyananindanun

In the matter of allocation of sugar release for sugar factories, there were several complaints of discrimination and favouritism. It is also alleged that sugar factories had ta pay money to the Ministers for the issue of release orders for sugar. Similarly in the matter of fixing prices for sugarcane a low price was fixed for the cane growers- to the advantage of sugar factory owners, Both the fixation of sugarcane price and the i*n"e of release orders for sugar bags were the bargaining countries for the Ministers to reach a deal with the Sugar Factory Owners at the cost of the peasant who produce the sugarcane and the public who consume the sugar. This episode warrants an investigation.

Serial No. 18

Memorandum of Shri M. G. Ramachandran.

THIRU SI. P, A. ADFTANAR, MINISTER FOR CO-OPERATION—TANJORE CO- OPERATIVE MARKETING FEDERATION—Rs. 2.00 CRORES SCANDAL

Shri V. S. Thyagaraja Mudaliar, President, Tanjore Marketing Federation a close frteod of the Chief Minister swindled over Rs. 2.00 crores of Public money as revealed by the report submitted by the Secretary, Tamil Nadu State Co-operativo Bank. Jnspite of the recommendations of the Officers and Chief Secretary, to hand over the case to Police and prosecute Mr. V. S. Thyagaraja Mudaliar and others cohcemed, no tangible action was taken due to the interference of Chief Minister and Mr. Aditanar, Co-operation Min- ister and Mr. V. S. Thyagaraja Mudaliar and Tanjore Co-operative Federation Committee Members were allowed to resign without arresting them and prosecuting them-

Memorandum of Shri M. Kalyanawindflram

SHRI V. S. THYAGARAJA MUDALIAR AND THE CHIEF MINISTER

Mr. V. S. Thyagaraja Mudaliar is one of the biggest landlords and industrialists of Tamil Nadu. He is a close friend and associate of the Chief Minister. Both of them hail from the same place called Thiruvarur, This Mr. V. S. Thyagaraja Mudaliar was the Chairman of Tanjore Co-operative Marketing Federation Ltd. Huge sums of money to the tune of about Rs. 2 crores belonging to the Tanjore Co-operative Marketing Federation were found to be misappropriated and the same was. reported by an audit report and proposals were made by Departments to prosecute the said Mr. V. S. Thyaimraja Mudaliar and other members of the Executive Committee of the said Federation. However, due to trie intervention of the Chief Minister the proposals to prosecute him were dropped and no further action has been taken for the recovery of tha huge amount. For what consi- deration this action against Shri V. S. Thyagaraja Mudaliar and his associates was dropped is a matter to be investigated seriously.

Serial No. 19

Memorandum of Shri M. Kalyantwundaram

Mr. Karunanidhi and his friends and associates—Mr. Karunanidhi, the Chief Minister of Tamil Nsdu has boon very generous not only to his relatives but also to his friends and associates.

(i) A. T,. fWnlvasan.—Shri A. I Srinivasan, currentlv ranks first in the list of friend* of the Chief Minister. He is closely connected with the Chief Minister in the film industry. He recently closed his Studio called "Sarada Studios" on the around of financial distress, and is known in the film trade as commercially insolvent. However, thp Chief Minister MV. Karunanidhi has found his friend Mr. A>- L. Srinivasan to be resourceful enough to RO in for "Beer" prtxluction and has §(ivea k licence ta him to start a factory for the manufacture of "Beer". What are the resources of Mr, A. L. Srinivasan and how this licence has been given to hirri are matters requiring an investigation.

Thk Mr. A. L. Srinivasan in trying to forcibly acquire ownership of about tOO acres of land in the vicinity of the Madras City through influence of Chief Minister and SEC. 3(ii)3 THE GAZETTE OF INDIA EXTRAORDINARY x&j

Serial No. 20

AbMaoraudum of Shri M. KalyaBKnradanun.

KODAIKANAL TO PAIANI ROAD

The construction of the said road at a cost of Rs. 85 lakhs was given to a firm called S-. Ahmed & Co., and huge sums of money have been given as advance to S. Ahmed A Co.

In, Coimbatore, for the construction of a overbridge the work was again given to this S. Ahmed & Co. In this case also huge advances have been given to the contractor*. The necessity for grant of such huge advances requires serious investigation.

Serial No. 21

Memorandum of Shri M. KalyamMundaram

D. M. K. PARTY AND PRIVATE TRUSTS

In the shape of advancing party interests, private Trusts have been created by the Chief Minister and his associates for purchase of properties in the name of the said Trust.

One such Trust has been formed at Madras and it has purchased a very valuable pro- perty measuring abfiut 100 grounds at an estimated price of Rs. 20 lakhs.

Another such Trust has been formed at Madurai and it has purchased a valuable property in Madurai known as Udipi Boarding and Lodging House Building for a docu- ment consideration of Rs. 5 lakhs from Jamindariui of Bodi.

The names of the Trustees, Objects of the Trust, Terms and Conditions of the Tnwt. the necessity of creating Trust* for purchase of properties for party use are all matters of great mystery.

It is common knowledge that the D.M.K. Party does not maintain any proper accounts. And it is a great mystery as to wherefrom such huge sum* of money have come for these Trusts.

All efforts to get a copy of the Trust Deed from the, Registration Department hatye proved abortive. The copies of these documents are feared to be in the safe custody of the Chief Minister.

The whole matter needs a complete investigation.

Serial No. 22

.Memorandum at Shri M. Kalyanasundaram

MR. ANBTL DHARMALINGAM

The following charges are levelled against lihe Minister for Agriculture Mr. Anbil Dharmalingam:—

(c) The Agricultural Minister imtcad of protecting the poor peasants and tenants used his office and position and influence as Agricultural Minister in the forcible evic- tion of forty tenant* in the Thathachari Estate of 80 acres. The role played by Mr. Anbil Dharmalingam, the circumstances and manner in which such tenants were evicted and -why Mr. Anbil Dharmalingam should go to the 'aid of the landlord and for what con- sideration are all points requiring a probe.

(d) Mr. Anbil Dharmalingfam's relatives were involved in a murder case in village Anbil. in Lalgudi taluk, Tiruchi district. Here again the Ministerial influence interfered in the police enquiry. On account of the Ministerial influence the police conducted the enquiry in such a manner that all the culprits got away. It is on record that no lew a person than the District Judge of Tinichy had to pass verv Mvere strictures on the methods of enquiry adopted by the Police in that case. A probe Into the matter will throw more light.

Mr. Anbil DharmaHngam, Is renowned for sudden changes of portfolio by Chief Minister, then .return of same portfolio to him, resignation and then reappointmenf "" Minister. What were the real circumstances of these changes and resignation and *e- appointments. What was the real quarrel between him and the Chief Minister and why

is Chief Minister so frightened by Mr. Anbil Dharmalingam so as not to take any perma- nent action against him and what are the cards that Shri AnbU Dharmalingam is holding close to his chest, will form an interesting story if probed into. Serial No. 23

Memorandum of Shri M. Kalyaiiattindimm

MISCELLANEOUS MISDEEDS

(1) In the VallanaJu Land Development Bank in Srivaikundam, Tirunelveli district, a sum of Rs. 22 lakhs were withdrawn from the Bank on one fine morning by tije Chief of the Bank belonging to the D.M.K. party. The Bank is under direct control of the Go-opcration Minister Shri S. B. Aditanax. The account on which the money was drawn, the purpose, the regularity, etc., 'all need an investigation.

(2) In Tanjore Urban Bank a sum of Rs. 2 lakhs was taken by one Mr. Rajtunemckam an advocate belonging to the D.M.K. party. A criminal case ii going on against him. Who asked him to draw the money, for what purpose and other connected matters need an enquiry.

(3) In Tanjore Central Co-operative Bank the President of the Bank Mr. P. Manicfca- vasagam a member of the D.M.K. General Council has swindled Rs. 2 lakhs under various false names and he has been arrested on 2nd September, 1972.

(4-) In Dharmapuri District Central Co-operative Bank about Rs. 52 lakhs of beoaml loans have been given under the D.M.K. President's orders. No action whatsoever has so far been taken even after fraud has been found out.

Serial No. 24

Memorandum of Shri M. Kalyanasundaram

USING THE STATE MACHINERY AND ARMED GANGS TO ORGANISE DJM.K. TRADE UNIONS

The ruling party organised the seizure of the union building and record* of Mr. Gurumurthy of the Simpson Company, imposed their leader Kattur Gopal through violence of armed gangs and violence had been let loose creating tension in the city for over a year with more than two leaders being murdered. Simpson Company belongs to Sivasailam who figures in the tractor deal.

During the month of luly 1971 when there was an industrial dispute between the employer and employees of Sarada Studio (the owner of the Studio being Shri A. I. Sri- nivasan one of 1'ne coterie of the Chief Minister, Shri Karunantfhi) the State machinery was set in motion, a new union rival to the striking union was registered. An agreement was signed, police were unleashed on the employees who were mercilessly manhandled, forcibly removed and left in far off remote places.

In the State Electricity Bo'ard, chosen employees belonging to the D.M.K. party Started a rival union with the direct help and encouragement of the State Ministers. The Electricity Board was ordered to support the D.M.K.-sponsored Union. Office bearers of the longstanding union, recognised by the management -were threatened with dire con- Sequences, transferred to remote places and in some cases some were manhandled with the support of the Police.

Such is the order of the day all over the State.

Serial No. 25

Memorandum of Shri M. Kalywuuundonun

INTIMIDATION AND ATTACK ON THE PRESS

The Karunanidhi Ministry has made it their regular practice to intimidate tl" press if they report anything 'against the Government.

The Editor of Ananda Vikadan openly apologised through the columns of the jott™⁶* for having editorially supported the demand made by the veteran leader bhn O K"J"- gop&tachari about the rumoured C.B.I, investigation again&t tho Chief Minuter.

"Alai Osai" a popular daily's office was attacked by the D.M.K. armed gang earning, serious loss of property.

Armed gangs roamed about the city and threatened publishers of weekly journals like Kumudam, Ananda Vlkatan and Kalki for their critical attitude towards the D.MJt. Government. Harassment of Alai Osai, Navamani and Navasakthi by cutting electricity supply in the name of cut in power supply due to shortage was resorted to by the Electri- city department. Supply was resumed after strong protest from the public.

Serial No. 26

Memorandum of Shri M. Karynnnmimilrmn

MISUSE OF STATE APPARATUS FOR PARTY PURPOSES

The District Conferences of the D.M.K. party was the occasion for the publicity department of tVie State Government to pcopagate State autonomy with the portraits oi Kurunanidhi and Mujibur Rahman.

In the Madurai district conference of the D.M.K. when the whole city was converted! wto 'an exhibition electricity connections were taken directly from the main lino without meter, with the full knowledge of the electricity department and the Ministry.

Serial No. 27

MMOOTmndum of Shri M. Kalyanasundaram

MISUSE OF THE POLICE TO CRUSH ALL OPPOSITION

On 27th August 1972 at Singambuneri in Ramanathapuram district, the native place of Shri S. Madhavan, Minister for Industries, police removed the huts belonging to Kupporters of the Communist Party of India, the reading room of the C.P.I. was 'attacked and ransaked and the Communist Party flag was removed from ftie post. The placo w&" handed over to D . M . K. men and the D . M . K. flag went up the post. Communists who protested against this were Arrested and prosecuted.

Td October 1971 police entered the Xavier's College compound at Palayamkottai in Tirunelvcli district and the inmates were b;aten up very badly without any cause or justification.

In the month of September 197t at Kadayampatti near Bhavani in Coimbatore district t'ne police at the instance of D.M.K. men attacked every house of the village other than the D.M.K. and attacked them severely all over a. private quarrel of two families.

I* the month of November 1971 at K'arivalamvandhanallur in Tirunclveli district a Harijan was dcrne to death in the police lock-up No judicial enquiry wais ordered in spite of popular protest. Instead two were killed in the police firing on the protesting people.

Daring the mont'a of lanuary 1972 the police deliberately and without any provoca- tion or -warrant by design attacked T.U. leaders Shri A, Srinivasan, Shri K. M. Sundaram of tho A.I.T.U.C., Shri V. P. Chintan of the C.l/I.U. and Shri Kuchclar an independent T.U. leader causing serious injury to them.

On 26rh February 1972 at Namakkal in the Salem district Shri Chinnappan a Harijan wa" beaten to death in the polic* lock-up and there was no enquiry.

On 27th February 1972 at Thirupathur town in Ramanathapuram district sludetiti* were brutally beaten up by the police at the in&tance of a correspondent running * private college.

During the farmers struggle unwarranted firings took place in many centres. To mention one. nine lives were lost in shooting in the villas of Peddanaickanpalayam. The viflagt was marked out as a Communist stronghold. There was no incident to pro- voke a firing. No police officer was injured. The Chief Minister •announced that a crowd which tried to attack the local police station was fired upon in self-defence. The fact of the matter is that there is no police station in Peddanaickenpalayam.

Similar shootings took place in Sdltur, Manamadurai, Aruppukottai, Palavanathan, Koilpatti and Ayyampalayam.

Every democratic demand of the people is being met with unheard of repression, including the present movement for a Commission of Enquiry into the above changes.

The situation in Tamil Nadu is very serious. State Government relies on police lathis and bullets to suppress t'ne agitation.

[No. 381/3/76-AVD. Ill]

R. K. TRIVEDI, Secy.