The Central Bureau of Investigation (CBI) has registered a case concerning alleged irregularities in the procurement of transformers by the Tamil Nadu Power Distribution Corporation (TNPDCL), formerly known as Tangedco, during the tenure of DMK leader V Senthil Balaji as electricity minister. The irregularities are reported to have caused a loss of Rs 397 crore to the state exchequer.
Details of the Case
The anti-corruption branch of the CBI in Chennai has booked the then members of the tender inviting authority and the tender scrutiny committee. This action follows a directive from the Madras High Court based on complaints filed by Arappor Iyakkam, an anti-corruption organization, and the AIADMK's advocate wing.
Arappor Iyakkam 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 issued by the then Tangedco to procure more than 45,000 transformers at a cost of Rs 1,182 crore. It claimed that over 25 bidders quoted identical prices, violating the provisions of the Tender Transparency Act. Additionally, it stated that 500 KVA transformers were purchased at an escalated cost of Rs 12.50 lakh, which was at least Rs 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 on the complaint, Arappor Iyakkam approached the Madras High Court, seeking directions for the DVAC to initiate an investigation. The AIADMK's advocate wing also joined the petition, demanding a fair probe into the discrepancies. In April, the first bench of the Madras High Court, comprising Chief Justice SA 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. TNPDCL officials have stated that they have already shared all relevant documents pertaining to the case with the central investigation agency.
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About the Author
Venkadesan S is a Special Correspondent who primarily covers electricity, aviation, the information commission, central investigation agencies, and metro rail.
