The Central Bureau of Investigation (CBI) has registered a First Information Report (FIR), marking the formal initiation of its probe into suspected irregularities in the procurement of transformers by the Tamil Nadu Power Distribution Corporation Limited (TNPDCL), formerly known as Tangedco. The alleged irregularities are estimated to have caused a loss of ₹397 crore to the state exchequer during the tenure of DMK MLA V Senthilbalaji as the electricity minister.
Background of the Case
The anti-corruption branch of the Chennai CBI has booked the then members of the tender inviting authority and the tender scrutiny committee. This action follows the direction of the Madras High Court, which had ordered the CBI probe based on complaints filed by the Arappor Iyakkam (a civil society organization) and the AIADMK's advocate wing.
Arappor Iyakkam had, in 2023, alleged corruption in tenders floated for the supply of distribution transformers with capacities ranging from 25 kVA to 500 kVA between 2021 and 2023. The organization analyzed 10 tenders floated by Tangedco to procure more than 45,000 transformers at a total cost of ₹1,182 crore. It claimed that more than 25 bidders quoted identical prices, in contravention of the provisions of the Tender Transparency Act. Additionally, it alleged that 500 kVA transformers were purchased at an escalated cost of ₹12.5 lakh, which was at least ₹5 lakh more than the prevailing market price during that period.
Legal Proceedings
Since the Directorate of Vigilance and Anti-Corruption (DVAC) did not act upon his complaint, the petitioner from Arappor Iyakkam approached the Madras High Court seeking directions to the DVAC to begin an investigation. The AIADMK's advocate wing also joined the petition, demanding a fair probe into the discrepancies, as the tenders allegedly caused a loss of ₹397 crore to the exchequer.
In April, the first bench of the Madras High Court, comprising Chief Justice S A Dharmadhikari and Justice G Arul Murugan, ordered a CBI investigation into the allegations. Challenging this order, TNPDCL Chief Financial Controller (CFC) V Kasi approached the Supreme Court. However, the apex court refused to intervene and dismissed the plea, clearing the way for the CBI probe.
TNPDCL officials have stated that they have already shared all relevant documents pertaining to the case with the central investigation agency.
