Published Apr 29, 2026 | 12:22 PM ⚊ Updated Apr 29, 2026 | 12:22 PM
Madras High Court. (Wikimedia Commons)
Synopsis: The Madras High Court ordered a CBI investigation into alleged irregularities in the procurement of transformers, which reportedly caused a loss of ₹397 crore to the Tamil Nadu government during 2021–2023. The petitions were filed by the Arappor Iyakkam and AIADMK seeking either a court-monitored SIT probe or a CBI inquiry.
The Madras High Court ordered a CBI investigation into alleged irregularities in the procurement of transformers, which reportedly caused a loss of ₹397 crore to the Tamil Nadu government during 2021–2023, when V Senthil Balaji held the Electricity portfolio, sources said on Wednesday, 29 April.
The court directed the Directorate of Vigilance and Anti-Corruption (DVAC) to hand over all relevant documents to the CBI within two weeks. It also instructed the Tamil Nadu government, DVAC, and TANGEDCO to extend full cooperation to the central agency.
The case pertains to the procurement of around 45,000 transformers between 2021 and 2023, in which a loss of ₹397 crore was alleged.
The petitions were filed by the Arappor Iyakkam, a Chennai-based NGO, and AIADMK lawyers I Saravanan and Rajkumar, seeking either a court-monitored Special Investigation Team (SIT) probe or a CBI inquiry.
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During the hearing, Arappor Iyakkam argued that all contractors quoted identical prices in the tender process, leading to a significant loss to the exchequer, and sought a court-monitored probe.
Counsel for the AIADMK-linked petitioners contended that the DVAC had prematurely closed the complaints, stating there was no prima facie evidence, and argued that a CBI probe was necessary as a minister and senior officials were allegedly involved.
Opposing the plea, TANGEDCO submitted that the allegation of loss was unfounded and that quoting uniform prices in transformer procurement has been a standard practice since 1987. It also alleged that the petitions were politically motivated.
The DVAC maintained that it had conducted a preliminary inquiry in accordance with the law and had closed the complaints after finding no evidence to substantiate the allegations.
After hearing all sides, the bench comprising Chief Justice SA Dharamadhikari and Justice G Arul Murugan had reserved orders. The court has now directed a CBI probe into the matter.
(With inputs from Subash Chandra Bose.)
