A vigilance investigation has uncovered an alleged attempt by senior officials of the erstwhile Tamil Nadu Generation and Distribution Corporation (Tangedco) to facilitate the release of ₹15.52 crore to a private contractor by circulating a forged communication purportedly issued by the Accountant General (AG) audit office, as reported in Times of India.
The case is among several vigilance and audit-related matters that have come under renewed scrutiny as the Tamilaga Vettri Kazhagam (TVK) government reviews allegations of financial irregularities, administrative lapses and pending inquiries within the state’s power utility.
The payment in question was linked to GVPREL, a private contractor that undertook underground power cable works in Ooty and Coimbatore beginning in 2008. The amount had reportedly remained unpaid after audit authorities raised objections over delays in completing the project.
According to the vigilance inquiry, an email was subsequently circulated among officials in the Coimbatore Distribution Circle claiming that the Accountant General had withdrawn the audit objections, thereby paving the way for the release of the pending payment to the contractor.
However, officials reportedly verified the communication with the Accountant General’s office, which confirmed that the audit objections had never been withdrawn. The discrepancy prompted the initiation of a vigilance inquiry.
The inquiry reportedly found prima facie evidence against P. Karuppaiah, who was serving as the Senior Divisional Chief Internal Audit Officer (DCIAO) at the time. Investigators alleged that he drafted and transmitted the disputed communication by using the official email credentials of a subordinate officer without authorisation.
The vigilance report further alleged that Karuppaiah prepared a fabricated letter carrying references to the Accountant General’s audit office and facilitated its circulation within the electricity utility.
Based on its findings, the vigilance wing recommended the initiation of major disciplinary proceedings against Karuppaiah and Baskar, who was then serving as Chief Engineer (Materials Management). It also recommended a forensic examination of electronic records and official communications connected to the alleged fabrication.
The inquiry further observed that the allegedly forged communication appeared to have benefited GVPREL as well as certain officials associated with the transaction.
A re-enquiry report submitted by the vigilance wing to the Chairman of the Tamil Nadu Power Distribution Corporation Limited (TNPDCL) last year reportedly recommended that the Crime Branch-Criminal Investigation Department (CBCID) conduct a criminal investigation into the alleged forged letter used in connection with the payment due to GVPREL.
Although Karuppaiah was permitted to retire from service on June 30, 2025, the report stated that disciplinary proceedings under the applicable pension rules would continue. It further noted that only provisional pension benefits had been sanctioned pending the outcome of the case.
When contacted, TNPDCL Chairman J. Radhakrishnan reportedly said that the corporation had sought legal opinion before proceeding further, as the matter involved the Accountant General’s office, which functions under the Central Government. He also stated that he had responded to the vigilance report seeking legal advice on the appropriate course of action.
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