Madras High Court (File Photo | Express)
Tamil Nadu

Madras HC orders CBI probe into alleged Rs 397 crore tender irregularities in transformer procurement

It directed the state government, TNPDCL and the DVAC to ‘extend full cooperation’ to the CBI in the probe and DVAC has to hand over all documents to the Central agency within two weeks.

R Sivakumar

CHENNAI: The Madras High Court on Wednesday ordered a Central Bureau of Investigation (CBI) probe into alleged Rs 397 crore tender irregularities in the procurement of transformers for the Tamil Nadu Generation and Distribution Corporation (TANGEDCO) during 2021–23, when V Senthil Balaji was the Electricity Minister.

The first bench of Chief Justice Sushrut Arvind Dharmadhikari and Justice G Arul Murugan pronounced the verdict on the petitions filed by a non-governmental organization crusading against corruption in public sphere, Arappor Iyakkam, and E Saravanan, an advocate belonging to the AIADMK.

Arappor Iyakkam alleged that the tender irregularities for purchasing 45,800 transformers for the TANGEDCO, currently Tamil Nadu Power Distribution Corporation (TNPDCL), have caused a loss of Rs. 397 crore the Exchequer and prayed for setting up a special investigation team for probing the matter.

The bench has transferred the investigations from the Directorate of Vigilance and Anti-Corruption of the Tamil Nadu Police to the CBI.

“The investigation into the complaints of the petitioner, hereby, transferred to the CBI. The investigating agency, appointed within two weeks from the order, shall conduct a de nova investigation as it deems fit and proceed in accordance with the law,” the bench said in the judgment.

It directed the state government, TNPDCL and the DVAC to ‘extend full cooperation’ to the CBI in the probe and DVAC has to hand over all documents to the Central agency within two weeks.

Arappor Iyakkam had filed the petition, in 2024, seeking registration of FIR by DVAC alleging that irregularities to the tune of Rs. 397 crore have been committed for purchasing 45,800 transformers at a cost Rs. 1, 182. 88 crore during 2021-23 when Senthil Balaji was holding the portfolio.

However, the state maintained that the procedure, for issuing tender, was in vogue since 1987 and it was followed by the TNPDCL and if the tenders were not given for purchase, the state would have run short of adequate numbers of transformers to meet out the requirements.

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