Madurai Mayor Resigns Following Investigation into Rs 200-Crore Property Tax Fraud

Indrani Ponvasanth's spouse informed NDTV that she has stepped down citing health concerns.

Madurai:

Madurai Mayor and DMK leader Indrani Ponvasanth has tendered her resignation amid allegations surrounding a substantial property tax scam worth multiple crores.

While Indrani remained unavailable for comment, her husband Pon Vasanth, who was previously arrested in connection with the case and recently released on bail, confirmed to NDTV, "She has resigned on health grounds."

Currently, a Special Investigation Team (SIT) is conducting a thorough investigation into the case, which involves widespread manipulation of property tax records.

Officials report that the scam occurred between 2022 and 2024, when certain officials allegedly abused their authority to deliberately undervalue property taxes for approximately 150 commercial establishments.

An AIADMK councillor, who filed a Public Interest Litigation (PIL), has alleged that this manipulation resulted in an estimated loss of Rs 200 crore to the municipal corporation. To date, at least eight individuals, including a former assistant commissioner of the corporation, have been taken into custody.

The fraudulent activity was discovered during a standard audit last year, following which the then Madurai Corporation Commissioner, Dinesh Kumar, filed an official complaint with the city police on September 6, 2024.

Investigations have uncovered that a network comprising corporation staff, contract employees, and intermediaries collaborated to manipulate tax data within the software system, thereby reducing tax liabilities without the knowledge of senior officials.

In July this year, the Madurai Bench of the Madras High Court instructed the Inspector-General of Police (South Zone) and the Madurai Commissioner of Police to establish an SIT headed by a senior IPS officer "with proven integrity."

Following these instructions, the Special Investigation Unit, under the leadership of DIG Abhinav Kumar of the Madurai Range, was formed to investigate the case.

The alleged scam gained political attention after an AIADMK councillor petitioned the High Court, accusing the ruling DMK-administered corporation of systematic corruption. The petitioner claimed that the fraud led to significant losses of public funds.

Chief Minister MK Stalin had previously directed all four zonal chairpersons of the Madurai Corporation to resign in the aftermath of the scandal.