DVAC launches probe into alleged ₹4,730-crore sand mining scam during DMK rule
The Directorate of Vigilance and Anti-Corruption (DVAC) has opened an investigation into an alleged ₹4,730-crore sand mining scam said to have taken place during a previous Dravida Munnetra Kazhagam (DMK) government in Tamil Nadu. The action follows a complaint from the Directorate of Enforcement (ED) flagging serious irregularities in river sand extraction across the State, according to official sources on Monday, October 5, 2026.
DVAC begins detailed inquiry
As part of the preliminary probe, the DVAC has issued notices to contractors, government officials and others purportedly linked to the alleged irregularities. The notices form part of a detailed inquiry that is typically conducted to establish a prima facie offence before registering a formal case, the sources said.
ED’s complaint and earlier correspondence
The ED initiated its probe under the Prevention of Money Laundering Act, 2002, after gathering evidence it says points to large-scale illegal sand extraction beyond permissible limits. The central agency had earlier written to the Tamil Nadu Director-General of Police on June 13, 2024, seeking the registration of a First Information Report (FIR). A reminder was sent on July 18, 2024. However, no action was taken on those communications at the time, the sources added.
Assessment across 28 river-sand mining sites
According to the ED, the assessment covered all 28 river-sand mining sites across Tamil Nadu. Investigators said they employed advanced scientific techniques, working with experts associated with a company incubated at the Indian Institute of Technology, Kanpur. The survey, the agency reported, revealed extraction that exceeded the limits allowed under State regulations.
On the basis of this analysis, the ED quantified the value of the illegally mined sand at ₹4,730 crore and characterized it as the “proceeds of crime.”
Use of GPS, geo-scanning and geo-fencing data
A key component of the ED’s evidence involved GPS and other technical data sourced from the company that sold excavators to the contractors operating at the quarries. The dataset included precise GPS coordinates, geo-scanning and geo-fencing inputs, and detailed logs of operational hours and excavation timings for specific machines at specific locations.
“The ED compared the data with the GPS coordinates of the permitted quarries and the number of machines permissible under the State government rules. The findings conclusively established that the subject excavators were deployed and operated beyond the demarcated boundaries,” the agency said in its report.
What happens next
DVAC’s ongoing inquiry is aimed at determining whether a prima facie case exists. If established, the agency can proceed to register a case and initiate further criminal investigation under relevant State laws. As of now, the DVAC has not announced the registration of a case and is in the process of examining the documents, data and submissions from those served with notices, the sources said.
Significance
The allegations, if proven, point to systemic breaches in the regulation of river-sand mining, an activity tightly governed due to its environmental, economic and law-and-order implications. The probe, triggered by the ED’s findings and correspondence dating back to mid-2024, places renewed scrutiny on the administration and oversight of mineral resources in Tamil Nadu and could have wider repercussions for contractors, officials and regulatory protocols across the sector.
