Home » M Hussain T Rajesh Held in Madurai Tax Fraud Case

M Hussain T Rajesh Held in Madurai Tax Fraud Case

Scam caused Rs1 crore loss to Madurai Corporation

by Ananya Mehta

A 10-month cyber crime investigation has uncovered a major property tax fraud involving revenue staff of the Madurai Corporation, resulting in losses nearing Rs1 crore. The scam, which impacted over 150 properties, involved deliberate under-assessment of taxes on the official portal.

M Hussain (32) and T Rajesh (29), two temporary employees of the civic body’s revenue department, were arrested and remanded on Thursday. Police revealed that the duo used stolen login credentials to manipulate data on the state’s municipal administration portal, drastically reducing the property tax owed by several owners.

The irregularities were first detected in August 2024, prompting the suspension of five bill collectors by then commissioner Dinesh Kumar. However, the action was later reversed following pressure from employee unions. The matter was formally handed over to the cyber crime unit for deeper investigation.

City Police Commissioner J Loganathan confirmed that the arrests are part of a broader probe. “We’re scrutinizing digital logs and access patterns to trace the full network involved,” he said, indicating that more arrests could follow.

The incident has raised serious questions about the integrity of the property tax assessment process in Madurai. The city currently maintains 3.47 lakh assessments, covering both residential and commercial properties. Initial inspections and classifications are conducted by tax collectors, with final approval by senior revenue officials.

However, in this case, temporary staff had unauthorized access to login credentials, which were allegedly used to manipulate tax records between 2022–2023 and 2023–2024.

Corporation Commissioner Chitra Vijayan stated that all contract staff in the revenue section have been terminated. A show-cause notice has also been issued to the manpower agency responsible for their hiring. “We are committed to transparency and have rectified the affected tax entries,” she said in an official statement.

Authorities have pledged that strict protocols will be enforced to prevent future misuse of digital systems, signaling a serious effort to restore public trust in municipal governance.

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