Madras High Court orders CBI probe into Rs 397 crore transformer tender; DVAC records to be handed to CBI

The Madras High Court ordered a Central Bureau of Investigation (CBI) probe into alleged irregularities in a transformer procurement tender that reportedly caused a Rs 397 crore loss to the Tamil Nadu government during Senthil Balaji's electricity portfolio. The court also directed the Directorate of Vigilance and Anti-Corruption (DVAC) to hand over all relevant records to the CBI within two weeks, enabling a central investigation. The case stems from a complaint by anti-corruption NGO Arappor Iyakkam, which alleged cartelisation among 34 tender participants who quoted identical prices 40 to 60 percent above prevailing market rates. The NGO argued the uniform pricing suggested pre-arranged bids to eliminate competition and inflate costs. Jayaram Venkatesan, founder of Arappor Iyakkam, called the High Court order a crucial breakthrough. Balaji had previously faced ED allegations in a money-laundering case linked to a cash-for-jobs scam during his tenure as Transport Minister; he denies wrongdoing in the transformer tender, stating the procurement system followed since 2016 with three committees scrutinising bids and contracts awarded at identical prices. The ED has also alleged a separate Rs 1,000 crore irregularity in liquor procurement for sale through state-run outlets. The article notes that the opposition highlighted corruption as a key issue in the just-concluded Tamil Nadu assembly elections, with votes to be counted on May 4.