Eighteen teams of officers created by the Madurai Collector, Anshul Mishra, started inspections on 2 August 2012, covering 175 quarries in the district. After, P. R. Palanisamy of PRP Exports and Panneer Mohamed handed themselves over to the police. The state government suspended nine people, including a tehsildar and deputy tehsildar in Madurai. A senior clerk of Tamil Nadu Minerals Limited was arrested. A representation made by Mishra to the chief secretary Debendranath Sarangi sought an inquiry by the Directorate of Vigilance and Anti-Corruption into the roles of public servants in this scandal. After this exposure, the Tamil Nadu Government, worked with the Income Tax Department to carry out raids on other quarries across the state. The initial report sent by the Madurai collector at that time, Sagayam, placed the losses to the State government at 16,000 crore rupees. Some of the RTI activists claimed that the losses could be estimated at, around 1 lakh crore rupees.
Accused
P. R. Palanisamy, owner of PRP Exports and a billionaire with political connections, was arrested and his company was sealed. Olympus Granites, allegedly owned by Durai Dayanidhi, son of former Union Minister of Chemicals, M. K. Azhagiri, was also accused of illegal quarrying. The report submitted by U. Sagayam stated that 84 private quarries had violated license conditions and taken part in illegal mining. Palanichamy, his sons P. Senthil Kumar and P. Suresh Kumar and son-in-law A. Maharajan filed anticipatory bail applications with the Madurai bench of the Madras high court apprehending arrest in a case registered by the Keelavalavu police station. Dayanidhi Azhagiri also filed an anticipatory bail petition with the high court bench. After anticipatory bail was granted, Azhagiri surrendered before Melur court on 14 December 2012.
Chronology of events
2012
1 September: Raid of Geology and Mines Department office at the collectorate in Madurai by the Directorate of Vigilance and Anti-corruption officials.
2 September: Tamil Nadu police arrest four senior Government officers in connection with the scam.
8 August: Police raid 12 granite firms and 23 people holding supervisory positions in those firms have been arrested. Of the 23 held, 14 are from PRP Exports, 3 from Sindhu Granites, 2 from GG Granites and 4 from Madura Granites.
2014
11 September: The Madras High Court appoints U. Sagayam as a Special Officer/Legal Commissioner to inspect various types of mining activities in the State and submit a report to the court within two months.
2015
23 November: Sagayam submits his report to the Madras High Court, estimating a revenue loss of Rs 65,154.60 crore.
