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Tamil Nadu

CBI books TN officials in Rs 397 crore transformer scam

CBI’s Anti-Corruption Branch in Chennai registered the case after the Madras High Court ordered a fresh probe into the complaints.

Express News Service

CHENNAI: The Central Bureau of Investigation (CBI) has registered a case against the then officials of the Tender Inviting Authority and the Tender Scrutiny Committee of the Tamil Nadu Generation and Distribution Corporation (Tangedco), other public servants, and private persons/contractors in the alleged Rs 397 crore tender irregularities in the procurement of transformers for Tangedco during 2021-23.

The case was registered by the CBI’s Anti-Corruption Branch, Chennai, on Saturday following a Madras High Court order passed in April directing the CBI to conduct de novo probe into the complaints lodged by the petitioners. The court directed the state government, Tamil Nadu Power Distribution Corporation, and the Directorate of Vigilance and Anti-Corruption (DVAC) to “extend full cooperation” to the CBI in the probe and directed the DVAC to hand over all documents to the central agency within two weeks.

Arappor Iyakkam, an NGO, filed the petition in 2024 seeking registration of FIR by DVAC alleging irregularities to the tune of Rs 397 crore in the purchase of 45,800 transformers for Rs 1,182.88 crore during 2021-23, when DMK minister V Senthil Balaji was holding the electricity portfolio.

Alleging corruption in tenders floated for the supply of transformers of a range of specifications starting from 25 KVA up to 500 KVA, during 2021-23, leading to unjust enrichment to the bidders and loss to the exchequer to the tune of Rs 397 crore, Jayaram Venkatesan of Arappor Iyakkam, E Saravanan of AIADMK advocate wing, and Rajkumar of Madurai had lodged complaints to the DVAC on various occasions.

Officials booked for criminal conspiracy, cheating & abuse of position

The CBI said the above allegation discloses the commission of offences, punishable under section 7 of the Prevention of Corruption Act, 1988 (as amended in 201 B) and section 120B and 420 of the Indian Penal Code, by the then officials of Tangedco, other public servants, and private persons/contractors.

Hence, the central agency has registered a case for criminal conspiracy, cheating and abuse of official position as a public servant.

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