Madras High Court Orders CBI Probe Into 397 Crore Transformer Scam
A division bench of the Madras High Court has directed the Central Bureau of Investigation (CBI) to probe an alleged ₹397-crore transformer procurement scam. The case involves irregularities reported during the tenure of former Tamil Nadu Electricity Minister V. Senthilbalaji. The court mandated the Directorate of Vigilance and Anti-Corruption (DVAC) to transfer all investigation records to the federal agency within a two-week timeframe.
Key Facts
- Madras HC / order : CBI probe into transformer scam
- Project / financial loss : ₹397 crore
- Actor / former minister : V. Senthilbalaji
- Timeline / document handover : 2 weeks
The Madras High Court's decision to hand the case to the CBI follows a series of petitions alleging that the state-level investigation by the DVAC was insufficient or compromised. The scam centers on the procurement of power transformers at inflated prices, which reportedly caused a loss of ₹397 crore to the state exchequer. Chief Justice Sushrut Arvind Dharmadhikari and Justice G. Arul Murugan observed that a central agency's intervention was necessary to ensure a transparent and unbiased inquiry into the high-profile allegations involving political executives.
This judicial order is part of a broader legal crackdown on corruption in public infrastructure procurement. The court highlighted that the integrity of the procurement process in the power sector is vital for public trust. By setting a strict 14-day deadline for the handover of documents, the bench has effectively accelerated a case that has been a point of political contention in Tamil Nadu. The CBI will now re-examine the role of departmental officials and private suppliers who benefited from the contracts.
| Detail | Information |
|---|---|
| Subject | Transformer Procurement Irregularities |
| Financial Magnitude | ₹397 Crore |
| Primary Target | V. Senthilbalaji (Former Electricity Minister) |
| Judicial Bench | CJ S.A. Dharmadhikari and Justice G. Arul Murugan |
| Handover Deadline | 14 Days from April 30, 2026 |
Glossary
Exchequer: The national or state treasury; the account from which public money is disbursed for government functions.
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