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Madras High Court Orders CBI Probe Into ₹397 Crore Transformer Tender Scam During Senthil Balaji’s Tenure As Electricity Minister

Madras High Court Orders CBI Probe Into ₹397 Crore Transformer Tender Scam During Senthil Balaji’s Tenure As Electricity Minister

The Madras High Court has ordered a probe by the Central Bureau of Investigation into allegations of a ₹397 crore scam in the procurement of transformer tenders during the tenure of V. Senthil Balaji as Minister for Electricity and Prohibition and Excise between 2021 and 2023, as reported in LiveLaw.

A division bench comprising Chief Justice Sanjay A. Dharmadhikari and Justice G. Arul Murugan directed the Tamil Nadu Directorate of Vigilance and Anti-Corruption (DVAC) to transfer all files related to the case to the officer in charge of the investigation. The officer is to be appointed within two weeks from the date of the order.

The court further directed the CBI to conduct a de novo investigation based on the materials placed before it. It also instructed the State government, Tamil Nadu Generation and Distribution Corporation, and the DVAC to extend full cooperation to the central agency to ensure an effective investigation, including placing all relevant documents before it.

The bench also directed the CBI to take earnest steps to carry out the probe effectively and submit a report.

The petitions in the case were filed by Arappor Iyakkam and members belonging to other political parties, seeking a direction to the State to register an FIR against those involved. The petitioners submitted that despite sending representations to the State, no action had been taken, prompting them to approach the court.

During earlier hearings, the bench had called for details of the preliminary enquiry conducted by the DVAC. The petitioners also contended that there had been a delay in granting sanction under Section 17A of the Prevention of Corruption Act for initiating prosecution against the former minister.

The State, however, opposed the petitions, stating that the sanction had since been granted. It also argued that the petitions were filed with ulterior motives by individuals belonging to political parties, particularly with elections approaching, and urged the court to dismiss them.

Responding to this, the court observed that the mere fact that the petitioners belonged to political parties could not be a ground for dismissal when serious allegations were involved. The bench had subsequently directed the State to place all materials related to the preliminary enquiry, tender documents, and other relevant records before it.

While pronouncing its order on Wednesday, 29 April 2026, the court clarified that its observations were limited to the necessity of an independent investigation and would not affect the merits of the case.

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