Chennai: Former Tamil Nadu School Education Minister Anbil Mahesh Poyyamozhi was arrested on Monday, October 26, by the Chennai Central Crime Branch in connection with an alleged financial scam involving permissions and regulatory approvals for private schools.

The arrest came hours after the Madras High Court dismissed his anticipatory bail petition. The case centres on allegations that money was collected from private educational institutions by promising to secure government approvals, including school recognition and other regulatory clearances.

The alleged scam was initially reported to involve around ₹100 crore. However, Chief Public Prosecutor John Sathyan told the High Court that investigators suspected the amount could be as high as ₹400 crore. These figures are allegations presented in the case and have not been established as proven losses.

Searches and arrests in the case

The Central Crime Branch had conducted searches on September 16 at nine locations linked to companies associated with Anbil Mahesh, including firms in Chennai and Tiruchirappalli, as well as companies connected to his alleged associates, Valadi Karthi and Arun Prakash.

During the searches, investigators seized documents, cheques, 18 mobile phones, three laptops, eight pen drives and two desktop computers, among other records. The material was collected as part of the investigation into the alleged financial transactions.

Two other individuals, identified as Suresh and Raja, were also arrested in connection with the case. B.T. Arasakumar, president of the Tamil Nadu Private Schools Association, was arrested as well and subsequently released on bail.

What happened during the anticipatory bail hearing?

Anbil Mahesh approached the High Court seeking anticipatory bail to avoid arrest. During the hearing before Justice V. Lakshminarayanan, senior advocate Wilson, appearing for the former minister, argued that his client had cooperated with investigators.

Wilson told the court that Anbil Mahesh had appeared before the police on September 18 in response to a summons and had been questioned for eight hours, during which investigators reportedly asked 240 questions.

The defence also submitted that searches had already been conducted at properties belonging to the former minister and that documents had been seized. Wilson said Anbil Mahesh had provided income tax returns for seven of the ten years for which records had been sought.

The defence argued that he was not likely to abscond or influence witnesses, was willing to appear for further questioning and did not need to be taken into custody. It also pointed out that three accused in the case had been granted bail and that relevant documents were already with the government.

Prosecution opposes bail

Opposing the petition, Chief Public Prosecutor John Sathyan described the allegations as serious and referred to the case as one involving “financial terrorism”. He told the court that investigators suspected the amount involved could be substantially higher than the initially alleged ₹100 crore.

Sathyan also alleged that Muthukumar, described as a key accused, was absconding and that Anbil Mahesh was protecting him. He said the two had studied together and argued that custodial interrogation was necessary to investigate the alleged financial transactions.

The prosecution maintained that granting anticipatory bail could hamper the investigation. After hearing both sides, the court dismissed Anbil Mahesh’s anticipatory bail petition on October 26, after which the police arrested him.

The investigation is ongoing, and the allegations against the former minister remain subject to legal proceedings.