DVAC raids IAS officer's house for her role in receipt books scam

Sleuths from the Directorate of Vigilance and Anti-corruption (DVAC) on Tuesday raided the premises of IAS officer S Malarvizhi and a few others' houses in connection with a scam involving procurement of receipt books when she was posted as Dharmapuri District Collector between 2018 and 2020.

The raids came after the DVAC registered a First Information Report (FIR) against Malarvizhi, currently vice-chairperson, Science City, Chennai, and two businessmen – H Thageer Hussain, and V Palanivelu. The DVAC says the then collector allegedly diverted funds from the 5th Finance Commission’s grants for procurement of receipt books for 251 panchayats for various forms of tax collections.

The agency also said Malarvizhi, as District Collector, issued instructions to officers concerned that they should buy the receipt books only from private firms, contending that the books purchased from cooperative printing presses are not identical, leading to several malpractices.

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The FIR alleged that a total of 1.25 lakhs receipt books were procured from two firms – Crescent Traders and Naga Traders -- at an “exorbitant price” without floating a tender. It added that Malarvizhi entered into a criminal conspiracy with Hussain and Palanivelu by paying Rs 1.87 crore, which is Rs 1.31 crore higher than the amount charged by Dharmapuri District Printers Service Industrial Cooperative Society Ltd.

“A-1 being a public servant had performed her official functions improperly or dishonestly in anticipation of or in consequences of accepting undue advantages from A-2 and A-3 and also, she being entrusted with the funds of the Government, dishonestly fraudulently misappropriated a sum of Rs 1.31 crore and converted for her own use with their active connivance,” the FIR added.

The bureaucrat has been booked under section 120 B (Punishment of criminal conspiracy) of the IPC, 7(c) and 13(2) r/w 13(1)(a) of the Prevention of Corruption Act 1988. DVAC sleuths also raided Krishnan, District Development Officer, Pappireddipatti in connection with procurement of bleaching powder.