Madras High Court orders CBI probe into alleged transformer tender scam linked to Senthil Balaji
A Bench comprising Chief Justice S A Dharmadhikari and Justice Arul Murugan ordered that the investigation be transferred from the Directorate of Vigilance and Anti-Corruption (DVAC) to the CBI. The Court instructed DVAC to hand over all documents and its findings within two weeks.
Former Tamil Nadu Electricity Minister V Senthil Balaji
Chennai: The Madras High Court has directed the Central Bureau of Investigation (CBI) to take over the probe into alleged irregularities in transformer tenders issued during the tenure of former Tamil Nadu Electricity Minister V Senthil Balaji.
A Bench comprising Chief Justice S A Dharmadhikari and Justice Arul Murugan ordered that the investigation be transferred from the Directorate of Vigilance and Anti-Corruption (DVAC) to the CBI. The Court instructed DVAC to hand over all documents and its findings within two weeks.
The CBI has been asked to carry out a fresh (de novo) investigation and proceed according to law. The Court also directed the Tamil Nadu government, the Tamil Nadu Generation and Distribution Corporation, and DVAC to fully cooperate and provide all relevant records to ensure an effective inquiry.
The Bench clarified that its order is limited to deciding the need for an independent investigation and should not be seen as a judgment on the merits of the allegations.
The case stems from a public interest litigation filed by NGO Arappor Iyakkam. The petition raised concerns over ten tenders issued between 2021 and 2023 for procuring around 45,800 distribution transformers, with a total estimated value of ₹1,183 crore.
The NGO alleged that the tender process was manipulated to favour certain bidders, causing an estimated loss of ₹397 crore to the state exchequer. A major concern highlighted was identical pricing quoted by multiple bidders—between 25 and 37 companies in at least seven tenders—suggesting possible cartelisation and violation of tender transparency laws.
The petition also pointed to inflated pricing, claiming that some transformers were purchased at significantly higher rates than their estimated base cost.
Based on these claims, the petitioner had sought a court-monitored investigation and registration of a criminal case, arguing that earlier complaints had not led to any effective action.
