The Madras High Court has instructed the State to submit a response to a petition requesting legal action against former minister V Senthil Balaji over alleged corruption linked to transformer procurement. Justice G Jayachandran presided over the hearing of the petition initiated by Arappor Iyakkam, a Chennai-based NGO, which asserts that the former minister caused a financial loss of ₹397 crores to the state’s treasury.
During the proceedings, Advocate General PS Raman requested additional time to prepare a response, which the judge granted. Consequently, the State and the Directorate of Vigilance and Anti-Corruption (DVAC) were directed to present their responses, with the next hearing scheduled for the first week of June.
Arappor Iyakkam alleged that between 2021 and 2023, when Senthil Balaji held the position of electricity minister, he manipulated the tendering process for supplying transformers to the Tamil Nadu Generation and Distribution Corporation (TANGEDCO) fraudulently acquiring over 4000 transformers, effectively embezzling public funds. The organization claims to have scrutinized the tender process and identified several irregularities that led to financial losses for the state. Furthermore, Arappor Iyakkam urged the court to oversee the investigation by forming a special investigative team to ensure accountability and transparency.
Arappor Iyakkam's writ petition seeking direction for FIR and court-monitored SIT investigation into the complaint filed by #Arappor Iyakkam to DVAC with respect to the Rs 397 crore transformer procurement scam in Tangedco between 2021 to 2023 came today before Madras High… pic.twitter.com/5k8Jx9nEND
— Arappor Iyakkam (@Arappor) April 24, 2024
In a sworn affidavit submitted to the court, the NGO Arappor elucidated the pivotal role of distribution transformers in regulating voltage for consumer usage along distribution lines. Tangedco, tasked with procuring these transformers, obtains them in various capacities, spanning from 25 KVA to 500 KVA, depending on load demands. The procurement process transpires through tntenders.gov.in, where scrutiny of ten tenders issued between 2021 and 2023 revealed a bid for 45,800 distribution transformers, amounting to ₹1,182.88 crore. Arappor Iyakkam scrutinized bidding trends, bidder involvement, quoted prices, market norms, and other parameters, uncovering irregularities in seven out of the ten tenders, hinting at collusion among bidders and unjust gains for contractors.
A notable observation was that in each tender, more than 26 bidders seemingly participated, giving the impression of robust competition. However, it emerged that virtually all bidders quoted identical prices down to the decimal point, arousing suspicion of collusion to stifle competition and manipulate the tender process. The affidavit highlighted the statistical implausibility of multiple bidders quoting identical rates, suggesting a preconceived agreement to thwart competition.
(with inputs from DTNext)
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