NationalFriday, 2 October 2026·Hindu Tamil Thisai
ED probe into alleged ₹100-crore private school recognition scam in Tamil Nadu
ED has begun a probe into an alleged money-laundering case linked to promises of school recognition and approvals in Tamil Nadu.
Key highlights
Direct fact
In October 2026, the Enforcement Directorate began a separate investigation in Chennai into an alleged ₹100-crore scam involving 177 private schools in Tamil Nadu, after a June 27 arrest and subsequent police FIRs linked to recognition and approval promises.
Key specifics
- June 27: P.T. Arasakumar was arrested for allegedly collecting more than ₹100 crore from 177 private schools.
- Police said the promises included permanent recognition, school upgradation, and DTCP approval for private schools.
- More than 250 people have already been questioned and their statements recorded by the Central Crime Branch.
- ED has examined 20 bank accounts linked to Arasakumar’s family and 29 bank accounts linked to Muthukumar.
- A lookout notice was issued to stop Muthukumar from leaving India, according to the investigation.
Exam lens
Question type: Polity and governance + investigative agencies, key facts: ED, Central Crime Branch, ₹100 crore, 177 schools, 20 bank accounts, 29 bank accounts. TNPSC may ask who investigates money-laundering linked to a state-level fraud and what approvals were allegedly promised.