SC Greenlights CBI Probe Into ₹397-crore TN Transformer Purchase Case

The Supreme Court on Monday refused to interfere with a Madras High Court order directing a probe by the Central Bureau of Investigation (CBI) into alleged irregularities in the procurement of electricity transformers in Tamil Nadu, involving an estimated ₹397-crore loss to the state exchequer.

A bench of Justices Vikram Nath and Sandeep Mehta declined to entertain pleas challenging the High Court’s April 29 directive, which had ordered a CBI investigation into alleged irregularities in the purchase of around 45,000 distribution transformers between 2021 and 2023.

The case stems from petitions filed by NGO Arappor Iyakkam and leaders of the All India Anna Dravida Munnetra Kazhagam (AIADMK), who alleged large-scale irregularities in tender processes during the tenure of former Tamil Nadu electricity minister V. Senthil Balaji of the ruling Dravida Munnetra Kazhagam (DMK).

The Madras High Court had directed that all related complaints and documents be handed over to the CBI, and also asked the Tamil Nadu government, TANGEDCO, and the state vigilance department to fully cooperate with the investigation.

Before the Supreme Court, the petitioners argued that there was no specific prayer seeking a CBI probe and claimed the matter was politically motivated. However, the top court observed that constitutional courts have the power to order independent investigations if warranted, even in the absence of a specific request.

The Tamil Nadu government and Balaji have denied all allegations, stating that procurement procedures followed established norms that have been in place for decades.

By refusing to intervene, the Supreme Court effectively allowed the CBI probe to continue, leaving the investigation to proceed independently.