Chennai: The central crime branch (CCB) police froze at least 45 bank accounts operated by two suspects, including former MLA Muthukumar and private school association president B T Arasakumar, as part of the investigation into the suspected ₹400 crore private school recognition scam.
Police found that Muthukumar operated 25 bank accounts with a combined balance of ₹4.3 crore, while Arasakumar held 20 accounts containing ₹4 lakh. Investigators also found that Muthukumar, who served as president of a parents-teachers association, had collected ₹3 crore after circulating a communication to govt schools asking them to conduct parent-teacher meetings. Arasakumar was arrested in the case and later released on bail.
Police were examining the transactions to establish whether the money was anyway related to the scam.
Muthukumar surrendered before the court last week and was remanded in judicial custody.
The initial complaint estimated the fraud at ₹100 crore. The state public prosecutor later told the court that the investigation indicated collections of up to ₹400 crore.