Why are the Sarkaria Commission Report and Veeranam project back in focus? | Explained

The story so far: Tamil Nadu Chief Minister C. Joseph Vijay, in his reply to the debate on the demand for grants to his portfolio of Home in the Assembly on Monday (September 7, 2026), brought back to focus the Sarkaria Commission Inquiry, which went into allegations of corruption against former Chief Minister and the Dravida Munnetra Kazhagam (DMK)’s longest-serving president M.

Karunanidhi and his Cabinet colleagues of the 1970s. Two reports of the Commission were placed in Parliament during 1977-78. Known after its chairperson, Justice (retd.) R.S. Sarkaria, the Commission was constituted by the Union government in February 1976 when Indira Gandhi was Prime Minister, and the country was in the midst of the Emergency (June 1975-March 1977).

Justice Sarkaria, a judge of the Supreme Court at the time of appointment, was mandated to inquire into 28 allegations of corruption and misuse of power levelled against Karunanidhi and some of his Cabinet colleagues, who were in power in the State during 1969-1976.

The constitution of the panel was announced in Parliament on February 3, 1976, three days after the DMK’s Council of Ministers was dismissed by the Union government from office when the DMK regime’s ties with the Central government were at a low ebb.

The removal was based on the report of the then Governor K.K. Shah, who contended that the DMK government had, “by a series of acts of maladministration, corruption, and misuse of power for achieving partisan ends, set at nought all canons of justice and equity.” For about three years prior to its removal, the DMK regime was mired in controversies over the charges of corruption levelled by the Opposition.

The Congress (Organisation), shepherded by former Chief Minister K. Kamaraj, had been a bitter critic of the DMK government from the beginning. But, ever since the ruling party’s treasurer M.G. Ramachandran (MGR) exited the DMK over the issue of probity in public life in October 1972, he began increasingly occupying the centrestage and became Karunanidhi’s principal political adversary.

A few weeks after forming the All India Anna Dravida Munnetra Kazhagam (AIADMK), MGR submitted a memorandum to Mr. Shah on November 4, 1972, listing certain charges of corruption. This was followed with another memorandum presented by the Communist Party of India’s leader M.

Kalyanasundaram, who represented Tiruchi in the Lok Sabha twice, on December 20. Subsequently, one more petition was given by the AIADMK’s Members of Parliament, “Nanjil” K. Manoharan and G. Viswanathan, who later founded the Vellore Institute of Technology, one of the leading institutions in engineering education.

The Communist Party of India (Marxist) was another critic of the DMK government then. The allegations pertained to the misuse of an imported tractor, presented to Karunanidhi during his visit to the U.K. in 1971, in his farm in Tiruvarur; undue favours shown by Education Minister V.R.

Nedunchezhiyan to a publication firm in which Agriculture Minister Anbil Dharmalingam had interest; acceptance of bribes by Karunanidhi and Anbil Dharmalingam in the award of contracts for the aerial spraying of pesticides; undue favours shown by Industries Minister S.

Madhavan in the granting of loan given to the father in law of the DMK’s legislator S. Kandappan; similar charge against Karunanidhi, Madhavan and Revenue Minister P.U. Shanmugam in respect of amendment to the Madras City Tenants Protection Act, 1922 and similar charge against Karunanidhi for giving a brewery licence to his close friend.

The other charges covered the Veeranam project, sugar deals, DMK party and trusts; four lift irrigation schemes and the use of state machinery in favour of DMK trade unions. In the case of the contracts for the aerial spraying of pesticides, the panel held that Karunanidhi and Anbil Dharmalingam had received “illegal gratification” of ₹5.75 lakhs from aircraft operators.

Other allegations, which were held by the commission as either “wholly or partly substantiated,” related to the showing of undue favours to the publication firm, and the granting of the loan and brewery licence. Others in the allegations were Mr.

Nedunchezhiyan, Mr. Madhavan and Mr. Shanmugam. About the case concerning the Samayanallur power station, the Commission held the charges of abuse of official position and graft against the then Electricity Minister, O.P.

Raman established but found no evidence to show that in receiving the illegal gratification, Mr. Raman acted in concert with Mr. Karunanidhi. In respect of the Veeranam water supply project case and four others, the panel concluded that the allegations against the Chief Minister and his colleagues were substantiated.

As for the high profile Veeranam case, the Commission stated that Karunanidhi, “abusing his official position as Chief Minister, actuated with the motive to unduly favour” Sathyanarayana Bros, with the award of the contract for the Veeranam project, directed the Chief Engineer Hussain “to tailor his recommendations on the tenders in such a manner as would enable the Government to accept the tender of Sathyanarayana Bros,” The Hindu reported on May 13, 1978, quoting from the panel’s report.

Describing the decision to entrust the project to the contractor as “undoubtedly a major administrative blunder,” the panel had even assessed that nearly ₹6 crores was “squandered” over this project and “the responsibility for this must rest squarely on Mr.

Karunanidhi and Mr. Sadiq Pasha (then Public Works Minister),” the daily added, ascribing the content to the Commission’s report. The political instability in the country forced realignment of forces. By late 1979, the DMK and the Congress, headed by Indira Gandhi, had become allies.

When Indira Gandhi became Prime Minister in January 1980, it was a matter of formality that the cases filed against Mr. Karunanidhi and his colleagues were dropped. During the debate in the Assembly on the motion of thanks to the Governor...