Tamil Nadu Granite Scam Case: Whistleblower U. Sagayam IAS Cites Threat to Life, Skips Court
U. Sagayam, a former Legal Commissioner and Special Officer of the Madras High Court who exposed the massive granite scam in Tamil Nadu in 2014, has declined to appear in person before the Special Court for Mines and Minerals in Madurai to provide evidence against those accused of illegal granite mining. He claims that his life is in danger following the State government’s withdrawal of his security detail.
In a letter to the Special Public Prosecutor—a digital copy of which is available with Frontline—he stated that the Special Court had summoned him to appear on March 26, 2025. He responded by saying that he was “unable to travel to Madurai and provide evidence in the said court due to security concerns”.
He described the withdrawal of his security as “clearly biased, flawed, and unfair.” The decision makers, he said, had failed to consider the connections and track records of stakeholders in the granite mining industry, or to assess the nature of the crimes committed and the scale of irregularities he had exposed. Sagayam, therefore, requested the Special Public Prosecutor to inform the court about his “inability” to comply with its summons, citing “a clear threat to his life”.
Also Read | Crushed by the cartel: The cost of blowing the whistle in Tamil Nadu’s mining badlands
In 2014, the Madras High Court appointed him as Special Officer to investigate illegal granite mining in the State, and security was provided to him following its instructions. Sagayam uncovered a powerful mining mafia that had been extracting granite illegally since 1990 in and around Melur in Madurai district, causing a loss of an estimated Rs.1 lakh crore. He submitted a detailed report, over 600 pages long, to the High Court in November 2015. Frontline accessed the report exclusively and subsequently reported the scam in its March 2017 issue.
He added that the decision to withdraw his security suggested that officials “did not understand the gravity of the threat perception” he was facing. He referred to the brutal killing of Jagabar Ali of Pudukottai district by the illegal quarry mafia in January this year and the attempted murder of Zakir Hussain in Tirunelveli, remarking that such incidents “do not speak well of the law and order situation in Tamil Nadu”.
The murder of Jagabar Ali underscored the impunity with which mining criminals, who recklessly exploit natural resources, operate. Emboldened by systemic failures, they brutally killed a vulnerable and selfless whistleblower who had fought for his native village. The cold-blooded killing of Zakir Hussain, even after he had released a video expressing concern for his safety, was particularly shocking. These murders illustrate that the mafia and dangerous criminal elements have gained the upper hand and no longer fear being apprehended or punished for their heinous acts.
In his letter, Sagayam wrote that law-abiding citizens, activists, and whistleblowers were living under constant threat and fear. “It is a free run for the hardcore criminals,” he said. Given the circumstances, he stated that he could not comply with the summons to appear in person. He also informed the court that he would be unable to attend any future hearings or comply with further summons “until the restoration of the provision of security to me is done”.
“In his report, Sagayam estimated the loss to the exchequer at Rs.65,154.60 crore. He noted that if penalties were imposed for recovery, the amount would be approximately Rs.1.06 lakh crore.”
He demanded stringent action against police officers and criminals who, he alleged, were hand in glove in the murders of whistleblowers and activists. Accordingly, he said, he had approached the government seeking the restoration of his security.
When contacted, Sagayam told Frontline that he had informed the court of his inability to appear in person to depose owing to security concerns. He also confirmed that he had written a letter to the Chief Justice of the Madras High Court. “I have nothing more to say,” he added.
Trail of the sinister scam
Sagayam’s report to the Madras High Court laid bare the audacious nature of the granite mining operations in Madurai district, particularly highlighting “its sinister side—money laundering”. He exposed the direct involvement of government personnel, ranging from clerical staff to senior officials, including two District Collectors and officers from the Tamil Nadu Minerals Limited (TAMIN).
The inquiry began when Justice K. Chandru (since retired) of the Madras High Court, on February 4, 2011, ordered an enquiry into allegations of irregularities and tax evasion by PRP Exports, a leading granite exporter based in Melur, Madurai. The judge also quashed a July 2009 order by then Madurai Collector N. Mathivanan that had given the firm a clean chit. Justice Chandru directed the Commissioner of Geology and Mines to carry out a personal inspection, but no further action was taken.
Also Read | What lies beneath: The real cost of Tamil Nadu’s illegal quarries
In May 2012, Sagayam, then District Collector of Madurai, submitted a confidential 13-page report to the Tamil Nadu government alleging illegal granite mining worth Rs.16,000 crore in the district. A day after sending the report, he was transferred. His successor, Anshul Mishra, shut down 94 quarries and froze several bank accounts. Two former District Collectors, C. Kamaraj and N. Mathivanan, came under the scanner of the Directorate of Vigilance and Anti-Corruption. Several officials were suspended and transferred.
In 2013, Mishra submitted his findings to the government and was promptly transferred to Chennai. Later, the Madras High Court—acting on a PIL petition—appointed Sagayam as Commissioner of Inquiry to investigate the scam. Today, granite mining in and around Madurai has come to a virtual halt, with many major players in the industry facing criminal charges.
In his report, Sagayam estimated the loss to the exchequer at Rs.65,154.60 crore. He noted that if penalties were imposed for recovery, the amount would be approximately Rs.1.06 lakh crore. It is learnt that 98 FIRs were registered in 2012-13 against officials from TAMIN, and the Revenue and Mines and Minerals departments, as well as against private mining firms. These included Olympus Granites, in which Durai Dayanidhi—the son of M.K. Alagiri, then Union Minister for Chemicals and Fertilisers—was allegedly involved, PRP Exports owned by P.R. Palanichamy, and Sindhu Granites.
U. Sagayam, a former Legal Commissioner and Special Officer of the Madras High Court who exposed the massive granite scam in Tamil Nadu in 2014, has declined to appear in person before the Special Court for Mines and Minerals in Madurai to provide evidence against those accused of illegal granite mining. He claims that his life is in danger following the State government’s withdrawal of his security detail.
In a letter to the Special Public Prosecutor—a digital copy of which is available with Frontline—he stated that the Special Court had summoned him to appear on March 26, 2025. He responded by saying that he was “unable to travel to Madurai and provide evidence in the said court due to security concerns”.
He described the withdrawal of his security as “clearly biased, flawed, and unfair.” The decision makers, he said, had failed to consider the connections and track records of stakeholders in the granite mining industry, or to assess the nature of the crimes committed and the scale of irregularities he had exposed. Sagayam, therefore, requested the Special Public Prosecutor to inform the court about his “inability” to comply with its summons, citing “a clear threat to his life”.
Also Read | Crushed by the cartel: The cost of blowing the whistle in Tamil Nadu’s mining badlands
In 2014, the Madras High Court appointed him as Special Officer to investigate illegal granite mining in the State, and security was provided to him following its instructions. Sagayam uncovered a powerful mining mafia that had been extracting granite illegally since 1990 in and around Melur in Madurai district, causing a loss of an estimated Rs.1 lakh crore. He submitted a detailed report, over 600 pages long, to the High Court in November 2015. Frontline accessed the report exclusively and subsequently reported the scam in its March 2017 issue.
He added that the decision to withdraw his security suggested that officials “did not understand the gravity of the threat perception” he was facing. He referred to the brutal killing of Jagabar Ali of Pudukottai district by the illegal quarry mafia in January this year and the attempted murder of Zakir Hussain in Tirunelveli, remarking that such incidents “do not speak well of the law and order situation in Tamil Nadu”.
The murder of Jagabar Ali underscored the impunity with which mining criminals, who recklessly exploit natural resources, operate. Emboldened by systemic failures, they brutally killed a vulnerable and selfless whistleblower who had fought for his native village. The cold-blooded killing of Zakir Hussain, even after he had released a video expressing concern for his safety, was particularly shocking. These murders illustrate that the mafia and dangerous criminal elements have gained the upper hand and no longer fear being apprehended or punished for their heinous acts.
In his letter, Sagayam wrote that law-abiding citizens, activists, and whistleblowers were living under constant threat and fear. “It is a free run for the hardcore criminals,” he said. Given the circumstances, he stated that he could not comply with the summons to appear in person. He also informed the court that he would be unable to attend any future hearings or comply with further summons “until the restoration of the provision of security to me is done”.
“In his report, Sagayam estimated the loss to the exchequer at Rs.65,154.60 crore. He noted that if penalties were imposed for recovery, the amount would be approximately Rs.1.06 lakh crore.”
He demanded stringent action against police officers and criminals who, he alleged, were hand in glove in the murders of whistleblowers and activists. Accordingly, he said, he had approached the government seeking the restoration of his security.
When contacted, Sagayam told Frontline that he had informed the court of his inability to appear in person to depose owing to security concerns. He also confirmed that he had written a letter to the Chief Justice of the Madras High Court. “I have nothing more to say,” he added.
Trail of the sinister scam
Sagayam’s report to the Madras High Court laid bare the audacious nature of the granite mining operations in Madurai district, particularly highlighting “its sinister side—money laundering”. He exposed the direct involvement of government personnel, ranging from clerical staff to senior officials, including two District Collectors and officers from the Tamil Nadu Minerals Limited (TAMIN).
The inquiry began when Justice K. Chandru (since retired) of the Madras High Court, on February 4, 2011, ordered an enquiry into allegations of irregularities and tax evasion by PRP Exports, a leading granite exporter based in Melur, Madurai. The judge also quashed a July 2009 order by then Madurai Collector N. Mathivanan that had given the firm a clean chit. Justice Chandru directed the Commissioner of Geology and Mines to carry out a personal inspection, but no further action was taken.
Also Read | What lies beneath: The real cost of Tamil Nadu’s illegal quarries
In May 2012, Sagayam, then District Collector of Madurai, submitted a confidential 13-page report to the Tamil Nadu government alleging illegal granite mining worth Rs.16,000 crore in the district. A day after sending the report, he was transferred. His successor, Anshul Mishra, shut down 94 quarries and froze several bank accounts. Two former District Collectors, C. Kamaraj and N. Mathivanan, came under the scanner of the Directorate of Vigilance and Anti-Corruption. Several officials were suspended and transferred.
In 2013, Mishra submitted his findings to the government and was promptly transferred to Chennai. Later, the Madras High Court—acting on a PIL petition—appointed Sagayam as Commissioner of Inquiry to investigate the scam. Today, granite mining in and around Madurai has come to a virtual halt, with many major players in the industry facing criminal charges.
In his report, Sagayam estimated the loss to the exchequer at Rs.65,154.60 crore. He noted that if penalties were imposed for recovery, the amount would be approximately Rs.1.06 lakh crore. It is learnt that 98 FIRs were registered in 2012-13 against officials from TAMIN, and the Revenue and Mines and Minerals departments, as well as against private mining firms. These included Olympus Granites, in which Durai Dayanidhi—the son of M.K. Alagiri, then Union Minister for Chemicals and Fertilisers—was allegedly involved, PRP Exports owned by P.R. Palanichamy, and Sindhu Granites.
