HC orders CBI probe into multi-crore transformer procurement scam during Senthil Balaji’s tenure as minister

In yet another major setback for the ruling DMK and former Minister V Senthil Balaji, Madras High Court on Wednesday ordered a Central Bureau of Investigation (CBI) probe into the reported multi-crore transformer procurement scam, resulting in a loss of Rs 397 crore to the exchequer owing to collusive bidding by private entities when he was holding the Electricity portfolio during 2021 to 2023.

The First Division Bench of Chief Justice SA Dharmadhikari and Justice G Arul Murugan also directed the Directorate of Vigilance and Anti-Corruption (DVAC) to hand over the papers to the CBI within a fortnight. Further, the CBI has been ordered to conduct a de novo investigation into the scam and complete it expeditiously, in accordance with the law. The Tamil Nadu government, TANGEDCO and the DVAC have been directed to extend full cooperation in the probe by placing all relevant documents to the CBI officials.

Advertisement

The directions were passed on a 2024 petition filed by the anti-corruption watchdog, Arappor Iyakkam, which had earlier filed a complaint with the DVAC in July 2023. The present writ petition is a follow up, seeking a direction to the DVAC to register a FIR and proceed in the matter.

Counsel for Arappor Iyakkam, V Suresh, submitted that distribution transformers are meant to streamline the voltage in the distribution lines and TANGEDCO procures the equipment in various capacities considering the load capacity requirements. Though it was a competitive bidding for the procurement of 45,800 equipment by TANGECCO for Rs 1,182.88 crore, an analysis of 10 tenders and the value quoted by each revealed clear evidence of enrichment by the contractors through collusion in bidding and cartelisation resulting in the loss of Rs 397 crore, he submitted. Hence, the petitioner NGO’s insistence on registering an FIR.

Further, Senthil Balaji and then TANGEDCO chairman, Rajesh Lakhoni have been made respondents to this petition and prayed for the constitution of a Special Investigation Team by the DVAC for a court-monitored probe.

The state, objecting to the contention that there was delay in sanction under Section 17A of the Prevention of Corruption Act, for initiating prosecution against the former Minister, said sanction has been granted now and pressed for dismissing the petition along with others with a similar plea.