Thu Dec 04 12:09:33 UTC 2025: Summary:

A court in Sivaganga, India, has sentenced three individuals to three years of rigorous imprisonment and two others to two years for misappropriating funds allocated for a housing loan scheme for Sri Lankan Tamils between 1994 and 1996. The funds, totaling approximately ₹42 lakh, were embezzled by creating false documents and withdrawing the money in the names of other individuals. The convicted include a former tehsildar, a contractor, and the head of a Sri Lankan Tamil Rehabilitation Center.

News Article:

Ex-Official, Others Jailed in Tamil Nadu Housing Loan Scam

SIVAGANGA, India – December 4, 2025 – A special court in Sivaganga has handed down prison sentences to five individuals for their involvement in a decades-old embezzlement scheme targeting a housing loan program for Sri Lankan Tamils. The scam, which occurred between 1994 and 1996, involved the misappropriation of nearly ₹42 lakh (approximately $50,000 USD) allocated by the Tamil Nadu government.

The convicted individuals include Sardar, a former tehsildar, Kathiresan, a contractor, and Muthu alias Saravanamuthu, who headed a Sri Lankan Tamil Rehabilitation Center. The court sentenced each of these three to three years of rigorous imprisonment and imposed a fine of ₹30,000. Dinesh Kumar and Ramar received two-year sentences and fines of ₹15,000 each for their roles in the scheme.

Investigations revealed that the defendants created fraudulent documents to falsely show that loans had been disbursed to 435 Sri Lankan Tamils. The embezzled funds were then withdrawn using the names of other individuals.

The Sivaganga Directorate of Vigilance and Anti-Corruption police conducted the investigation, initially naming nine individuals in the case. However, several of the accused, including the then Devakottai Revenue Divisional Officer and other officials, passed away during the lengthy legal proceedings.

Judge Anitha Christy presided over the case in the Sivaganga Special Court for anti-corruption cases, delivering the verdicts and sentences today. The case highlights the ongoing efforts to combat corruption and ensure that funds intended for vulnerable populations reach their intended recipients.

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