The Central Bureau of Investigation (CBI) has registered a case concerning alleged irregularities in transformer purchases made by the Tamil Nadu Power Distribution Corporation Limited (TNPDCL). The matter involves claims that flaws in the procurement process may have resulted in a financial loss of nearly ₹397 crore to the public exchequer.
The investigation has been initiated by the anti-corruption branch of the CBI in Chennai following judicial directions. Former members associated with the tender inviting authority and the tender scrutiny committee have been named in the case as investigators begin examining the procurement process.
Questions Raised Over Transformer Tenders
The allegations relate to tenders issued between 2021 and 2023 for distribution transformers ranging from 25 KVA to 500 KVA capacities. Complaints submitted by public interest groups claimed that thousands of transformers were procured through multiple tenders involving expenditure exceeding ₹1,100 crore.
According to the complaints, several bids reportedly carried identical pricing patterns, raising concerns over compliance with transparency norms applicable to public procurement. It was also alleged that some high-capacity transformers were acquired at prices significantly higher than prevailing market rates during the same period.
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High Court Ordered Independent Investigation
Concerns regarding the tender process were initially raised in 2023. After no significant action followed at the state vigilance level, petitioners approached the Madras High Court seeking an independent inquiry.
A division bench of the High Court later directed the CBI to conduct a detailed investigation into the allegations. The order paved the way for the central agency to formally register the case and begin collecting evidence.
Supreme Court Refused To Stay Probe
The High Court's order was subsequently challenged before the Supreme Court. However, the apex court declined to interfere with the earlier directions, allowing the investigation to proceed.
Following the decision, the CBI officially commenced its probe into the alleged procurement irregularities.
Documents Shared With Investigators
Officials associated with TNPDCL have stated that all relevant documents and records connected to the procurement process have already been provided to the investigating agency.
The inquiry is expected to focus on tender procedures, pricing decisions, bid evaluations and whether established procurement norms were followed during the purchase of transformers.
As the investigation progresses, the findings could have significant implications for public sector procurement practices and financial accountability in large infrastructure projects.