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Tamil Nadu to challenge Ponmudy acquittal in sand quarrying case

The Madras High Court has directed the Enforcement Directorate to file a counter affidavit in response to a plea seeking to quash PMLA proceedings against former minister V. Ponmudy. The state government has indicated it will appeal against his acquittal in the ₹28.37-crore red sand quarrying case.

LSN India · 26 September 2026

Tamil Nadu to challenge Ponmudy acquittal in sand quarrying case

A bench of Chief Justice Sushrut Arvind Dharmadhikari and Justice G. Arul Murugan has ordered the central agency to submit its counter affidavit to Ponmudy's petition to quash proceedings under the Prevention of Money Laundering Act (PMLA).

The directive comes as the Tamil Nadu government prepares to challenge Ponmudy's acquittal in the red sand quarrying case, according to information shared by the ED with the court. The case involves alleged illegal extraction and sale of red sand worth ₹28.37 crore.

Ponmudy, a senior politician, had faced allegations related to unauthorized quarrying operations during his tenure in the state cabinet. The ED's counter affidavit will be crucial in determining whether the PMLA proceedings should continue despite his acquittal in the underlying criminal case.

The high court's direction sets the stage for a legal contest over the continuation of money laundering charges. The bench will examine whether evidence of illicit proceeds justifies maintaining the PMLA case independently of the criminal verdict.

The case underscores ongoing disputes over environmental resource extraction and financial accountability among Tamil Nadu's political establishment. The court's decision on the counter affidavit will likely influence the state's appeal strategy and the trajectory of the PMLA investigation.