Madras High Court ordered CBI probe into transformer tender irregularities causing Rs 397 crore loss. Court directed Central Bureau of Investigation to receive records from DVAC for independent investigation into procurement process.
The Madras High Court has ordered a probe by the Central Bureau of Investigation (CBI) into alleged irregularities in a transformer procurement tender, which is reported to have caused a loss of Rs 397 crore to the Tamil Nadu government. The tender was issued while Senthil Balaji served as the State’s Electricity Minister.
In its order, the Court also directed the Directorate of Vigilance and Anti-Corruption (DVAC) to hand over all relevant documents and records to the CBI within two weeks. The aim is to enable a thorough central investigation and ensure an independent review of how the procurement was conducted.
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The case traces back to a complaint lodged by anti-corruption organisation Arappor Iyakkam. The NGO alleged that the tender process between 2021 and 2023 was manipulated on a large scale, resulting in an estimated financial loss of about Rs 397 crore to the State. Arappor Iyakkam claimed the tender reflected clear signs of cartelisation, pointing to as many as 34 companies that quoted the same prices.
The complaint further alleged that the quoted rates were inflated by roughly 40% to 60% compared to prevailing market prices for distribution transformers. According to the petition, the identical pricing pattern indicated that bids may have been pre-arranged to restrict competition and allow contractors to secure deals at artificially high figures. The organisation argued that this coordinated conduct placed an undue financial burden on the public exchequer.
Jayaram Venkatesan said the High Court’s directive was a significant milestone after a long legal battle. He described the Court’s order as a significant breakthrough after a prolonged legal effort, explaining that it took nearly three years of sustained struggle just to secure the registration of an FIR. He expressed hope that the investigation would now move forward effectively, leading to accountability for those responsible and ensuring that the alleged loss of Rs 397 crore is ultimately recovered and restored to the public treasury.
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The development also intersects with wider legal proceedings involving Senthil Balaji. He had previously stepped down from ministerial duties following allegations by the Enforcement Directorate (ED) in a money laundering case connected to an alleged cash-for-jobs scam during his time as Transport Minister under former Chief Minister J Jayalalithaa. The ED has also flagged another alleged irregularity involving around Rs 1,000 crore in liquor procurement through state-run outlets. Balaji has denied all allegations and maintained that he will contest the cases through legal channels.
With the CBI taking over, investigators are expected to examine tender documents, pricing patterns, and potential links among bidders to determine whether cartelisation or a criminal conspiracy took place. The conduct of officials involved in approving and executing the contracts is also likely to be scrutinised.
Politically, the matter may gain further attention because corruption allegations have been a major issue in the recently concluded Tamil Nadu Assembly elections, where vote counting is scheduled for May 4.
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