The Supreme Court refused to interfere with the Madras High Court’s order directing a CBI probe into alleged transformer tender irregularities during former Tamil Nadu Electricity Minister V Senthil Balaji’s tenure, dismissing Kasi’s appeal as TANGEDCO withdrew challenges earlier.
The Supreme Court declined to intervene with an order of the Madras High Court directing a Central Bureau of Investigation (CBI) probe into alleged irregularities in transformer procurement tenders issued during the tenure of former Tamil Nadu Electricity Minister V Senthil Balaji.
A Bench of Justices Vikram Nath and Sandeep Mehta dismissed the appeal filed by TANGEDCO financial controller V Kasi. During the proceedings, TANGEDCO withdrew its separate appeal that challenged the High Court’s order.
While refusing to grant any relief, the Supreme Court also clarified that the CBI investigation must be conducted independently and uninfluenced by the observations made by the Madras High Court in its earlier decision.
Background of the Case
The dispute stems from ten tenders floated between 2021 and 2023 by TANGEDCO for procurement of nearly 45,800 distribution transformers, valued at approximately Rs1,183 crore. The tenders were issued while Balaji held the position of Electricity Minister in the State.
The matter was brought before the Madras High Court by NGO Arappor Iyakkam, which alleged large-scale manipulation in the tendering process. The NGO claimed that the procurement exercise was structured to benefit specific bidders, allegedly causing a loss of about Rs 397 crore to the State exchequer.
One of the key allegations highlighted before the High Court was that in several of the tenders, between 25 and 37 bidders quoted the same prices. The petitioner argued that such uniformity suggested cartelisation and violated the Tamil Nadu Transparency in Tenders Act. The petition also raised claims of inflated pricing in the transformer purchase.
On April 29, the Madras High Court directed a CBI investigation into the issue. The order was passed by a Division Bench comprising Chief Justice Sushrut Arvind Dharmadhikari and Justice Arul Murugan, which transferred the probe from the Directorate of Vigilance and Anti-Corruption (DVAC) to the central agency.
In its ruling, the High Court expressed dissatisfaction with how the DVAC had conducted the enquiry. The Bench observed that the agency’s conduct raised serious concerns about fairness and credibility.
Also Read: Madras HC Adjourns Senthil Balaji’s Appeal in Money Laundering Case to August 28
The Court noted that, despite detailed complaints being submitted, no FIR had been registered. It also pointed to an over three-year delay in completing the enquiry, and criticized the decision to restrict the probe to only one official despite multiple individuals being named in the complaints.
The High Court then directed the DVAC to hand over all documents, records and its enquiry report to the CBI within two weeks. It also ordered the CBI to carry out a de novo investigation into the allegations.
After the High Court’s order, appeals were filed before the Supreme Court by TANGEDCO and by V Kasi to challenge the transfer of the investigation to the CBI. However, the Supreme Court did not entertain the challenge on Monday, allowing the CBI probe to proceed.
Senior Advocates Siddharth Dave and DS Naidu appeared for Kasi in the Supreme Court proceedings.
Case Title: V Kasi vs Arappor Iyakkam.
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