The Chennai City Police have invoked the Goondas Act against B.T. Arasakumar, the prime accused in an alleged ₹100 crore cheating racket targeting private school managements across Tamil Nadu, days after his arrest by the Central Crime Branch (CCB). The preventive detention order, announced on Tuesday, 15 July, is aimed at stopping him from engaging in further fraudulent activity while the investigation is ongoing.

How the Alleged Fraud Operated

Arasakumar, aged 59, is accused of approaching the managements of multiple private schools across the state and claiming he could secure statutory approvals — including permanent recognition, school grade upgradation, DTCP and CMDA clearances, and no-objection certificates — by leveraging his purported political influence and contacts within government departments.

Investigators allege he convinced school administrators to hand over substantial sums by projecting himself as someone with extensive bureaucratic and political reach capable of fast-tracking official procedures. Despite collecting the money, he allegedly failed to deliver any of the promised clearances or return the funds.

Scale of the Scam

The case was registered on the basis of a complaint filed by D.C. Elangovan, Secretary of the Federation of Associations of Private Schools in Tamil Nadu. Police estimate that Arasakumar collected more than ₹100 crore from private school managements across the state through the alleged scheme.

Following his arrest, the CCB reported a surge in complaints from other affected institutions, suggesting the true scale of the fraud may be considerably larger than initially assessed. So far, representatives of 47 private schools have filed complaints, with confirmed financial losses in those cases alone exceeding ₹7 crore. Investigators expect more victims to come forward as the probe widens.

Financial Trail and Frozen Accounts

As part of the ongoing investigation, officials have examined digital financial transactions linked to the complaints and frozen Arasakumar's bank accounts to prevent any further movement of suspected proceeds of crime. Investigators are also tracing the money trail to identify additional beneficiaries and possible accomplices in the network.

Hunt for Second Suspect

Police are actively searching for another key suspect, Muthukumar, who is believed to have played a significant role in the alleged fraud. Multiple teams have been deployed to locate him, and the investigation is continuing to map the full extent of the network and the total amount involved in the scam.

With the Goondas Act invoked and bank accounts frozen, authorities are signalling that the crackdown on the alleged racket is set to intensify as more victims are expected to surface.