The Central Bureau of Investigation has registered a case over alleged irregularities in the purchase of transformers by the Tamil Nadu Power Distribution Corporation Limited (TNPDCL), following allegations that the procurement process caused a loss of ₹397 crore to the public exchequer.
The anti-corruption branch of the CBI in Chennai booked former members of the tender inviting authority and the tender scrutiny committee. The case was registered pursuant to directions issued by the Madras High Court based on complaints filed by Arappor Iyakkam and AIADMK advocate wing member Arappor Iyakkam.
Registration Begins for FutureCrime Summit 2026, India’s Largest Cybercrime Conference
Allegations Linked to Transformer Procurement
According to the complaint, irregularities were alleged in tenders floated for the supply of distribution transformers with capacities ranging from 25 KVA to 500 KVA between 2021 and 2023.
The complainant organisation stated that it analysed ten tenders floated by Tangedco for the procurement of more than 45,000 transformers at a cost of ₹1,182 crore. It alleged that more than 25 bids were quoted at the same price, in violation of provisions of the Tender Transparency Act.
The complaint further alleged that 500 kVA transformers were purchased at a rate of ₹1.250 lakh higher than the prevailing market price during the relevant period.
High Court Intervention Led to Probe
Arappor Iyakkam said it first raised concerns regarding the tender process in 2023 and sought an investigation into the alleged discrepancies.
After the Directorate of Vigilance and Anti-Corruption did not act on the complaint, the organisation approached the Madras High Court seeking directions for an inquiry. AIADMK’s advocate wing subsequently joined the petitioner in seeking a probe into the matter.
In April, a division bench of the Madras High Court comprising Chief Justice S.A. Dharmadhikari and Justice G. Arul Murugan directed the CBI to investigate the allegations.
Supreme Court Declines to Intervene
The court order was challenged before the Supreme Court by TNPDCL Chief Financial Controller V. Kasi. However, the apex court declined to interfere and dismissed the plea.
Following the judicial directions, the CBI registered the case and commenced its investigation into the alleged procurement irregularities.
TNPDCL officials stated that all documents relevant to the case had already been shared with the central investigating agency. The investigation is now expected to examine the tender process, pricing decisions and procurement procedures related to the transformer purchases.
