In a significant development in the multi-crore illegal beach sand mining case, the Central Bureau of Investigation (CBI) has registered seven First Information Reports (FIRs) against six private companies and 21 individuals—including mining baron S Vaikundarajan, his family members, employees, and unknown government officials—for large-scale illegal mining of beach sand minerals in Tamil Nadu’s southern coastal districts between 2000 and 2017.
The CBI action follows sweeping raids conducted on April 5 at 12 locations across Chennai, Tirunelveli, and Thoothukudi, targeting the residences and offices of those allegedly involved in the mining racket. These include the premises of Vaikundarajan, the Managing Director of VV Minerals, one of India’s largest sand mining companies. The agency seized several incriminating documents during the searches.
According to a detailed note issued by the CBI on April 6, the cases have been registered in compliance with a Madras High Court order dated February 17, 2024. The court, in a suo motu Public Interest Litigation (PIL), had directed the CBI to probe illegal mining, transportation, and export of valuable beach sand minerals—including garnet and ilmenite—from the coastal districts of Tirunelveli, Thoothukudi, and Kanniyakumari.
The FIRs invoke several provisions under the Indian Penal Code (IPC), the Mines and Minerals (Development and Regulation) Act, 1957, the Prevention of Corruption Act, 1988, and the Atomic Energy Act, 1962. These laws are applicable given the sensitive nature of the minerals involved, including monazite, a mineral containing radioactive elements.
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The CBI has alleged that mining companies, in criminal conspiracy with unknown public servants, committed theft of minerals, cheated the government, and violated key regulatory frameworks. Public officials, it said, abused their positions to grant mining approvals, overlook violations, and provide undue favours, leading to a staggering loss of ₹5,832.29 crore to the exchequer.
Prominent Accused: Vaikundarajan and Family
S. Vaikundarajan has been named as the first accused in three of the seven FIRs. Two of his sons, Velmurugan and Subramanian, his brother S. Jagatheesan, and nephews Muthurajan, Subburajan, and Senthilrajan have also been named in the FIRs. Several employees and directors of associated firms have been booked as well.
Among the companies named are:
- VV Minerals
- Transworld Garnet India Ltd.
- Indian Ocean Garnet Sands Company Ltd.
- Industrial Mineral India Pvt. Ltd.
- Beach Minerals Company Ltd.
- One other unnamed firm
The agency stated that VV Minerals alone held 34 mining licences across the three districts and is accused of illegally extracting minerals worth ₹3,581.11 crore—far beyond the approved quantity—and continuing operations even after a state-imposed ban. Transworld Garnet India, with 16 licences, allegedly caused a loss of Rs 478.35 crore, while Beach Minerals Company is accused of extracting minerals worth Rs 921.70 crore.
Government Officials Under the Scanner
While no names of government officials were specified in the FIRs, the CBI has acknowledged the role of “unknown public servants” in the massive scam. Investigators believe that the collusion extended across multiple departments responsible for issuing licences, environmental clearances, transportation permits, and royalty settlements.
To intensify the probe, the CBI has deployed a special investigation team comprising five inspectors, a Deputy Superintendent of Police (DSP), and an Assistant Superintendent of Police (ASP). The agency has also indicated that more FIRs may follow as it continues to unravel the web of collusion between bureaucrats, political figures, and private firms.
The CBI investigation stems from a scathing order by a division bench of the Madras High Court—Justices S.M. Subramaniam and M. Jothiraman—who held that the large-scale violations and regulatory failures suggested a “scheme of collusion, corruption and connivance among political, executive, and private mining companies.”
The court had ordered a multidisciplinary probe, highlighting that the issue went beyond illegal mining and entered the realm of national security. It noted the sensitive nature of monazite, a radioactive mineral with strategic importance, and questioned how it was included in mining leases without proper safeguards.
The bench directed the Union Government to scrutinize the financial and commercial dealings of the involved companies and refer the case to multiple agencies, including the Enforcement Directorate (ED), Income Tax Department, Customs and Excise, Commercial Taxes Department, and others as necessary.
Illegal beach sand mining in Tamil Nadu has been a controversial subject for more than two decades. Environmental activists and whistleblowers have consistently raised concerns over unregulated mining, particularly of rare earth minerals, which not only damages the fragile coastal ecosystem but also raises concerns of national interest.
Despite numerous complaints, successive state governments have been accused of turning a blind eye, with allegations of political patronage shielding violators. The latest CBI action, therefore, marks a turning point in what could become one of India’s biggest mining corruption cases.
