CBI registers FIR, starts probe into Tamil Nadu transformer procurement irregularities

CHENNAI: CBI has registered an FIR signalling the start of its probe into suspected irregularities in purchasing transformers by the Tamil Nadu Power Distribution Corporation (TNPDCL), previously Tangedco, to the tune of ₹397 crore to the exchequer, during the tenure of DMK MLA V Senthilbalaji as electricity minister.

The anti-corruption branch of Chennai CBI has booked the then members of tender inviting authority and tender scrutiny committee as per Madras high court’s direction based on complaints of Arappor Iyakkam and AIADMK’s advocate wing.

Arappor Iyakkam had in 2023 alleged corruption in tenders floated for the supply of distribution transformers with capacities ranging from 25kVA up to 500kVA between 2021 and 2023.

Arappor Iyakkam analysed 10 tenders floated by Tangedco to procure more than 45,000 transformers at the cost of ₹1,182 crore and said more than 25 bidders quoted an identical price in contravention of the provisions of the Tender Transparency Act and added that 500kVA transformers were purchased at the escalated cost of ₹12.5 lakh, at least ₹5 lakh more than the market price prevailing during the period.

Since directorate of vigilance and anti-corruption (DVAC) did not act upon his complaint, he moved Madras high court seeking directions to DVAC to begin investigation. AIADMK’s advocate wing too joined Arappor Iyakkam to demand a fair probe into the discrepancies as the tenders caused a loss of ₹397 crore to the exchequer.

In April, the first bench of Madras high court comprising Chief Justice S A Dharmadhikari and Justice G Arul Murugan ordered for CBI into the allegations.

Challenging the order, TNPDCL chief financial controller (CFC) V Kasi approached the Supreme Court, but the apex court refused to intervene and dismissed the plea. TNPDCL officials said they had already shared all relevant documents pertaining to the case to the central investigation agency.