SC upholds CBI probe into Rs 397 crore tender scam during Senthil Balaji's tenure as TN minister

New Delhi, May 11 The Supreme Court on Monday declined to interfere with the Madras High Court’s order directing a Central Bureau of Investigation (CBI) probe into alleged irregularities worth Rs 397 crore in transformer procurements carried out during the tenure of former Tamil Nadu Electricity Minister V. Senthil Balaji between 2021 and 2023.

A bench of Justice Vikram Nath and Justice Sandeep Mehta dismissed the special leave petition (SLP) filed by V Kasi, Financial Controller of the Tamil Nadu Generation and Distribution Corporation (TANGEDCO), challenging the Madras High Court’s direction ordering a CBI inquiry.

During the hearing, senior advocate Siddharth Dave, appearing for TANGEDCO official, argued that there was no specific prayer before the Madras High Court seeking a CBI probe and contended that the proceedings were politically motivated.

"There was no prayer for a CBI enquiry before the High Court. It's a politically motivated case," Dave submitted.

However, the Justice Vikram Nath-led Bench observed that a Constitutional court was empowered to direct an independent investigation if circumstances warranted such a course.

"We don't need a prayer. It depends upon how the court feels," it observed.

Declining to entertain the plea, the Supreme Court said: "We are not inclined to entertain the Special Leave Petition (SLP)."

At the same time, the apex court clarified that the investigation should proceed independently and should not be influenced by any observations made by the Madras High Court while directing the CBI probe.

"However, the investigation shall not be influenced by the observations made by the High Court," the apex court ordered.

The Madras High Court, in its April 29 order, had directed a de novo investigation by the CBI into alleged irregularities in the procurement of around 45,000 distribution transformers during the period between 2021 and 2023.

A division bench of Chief Justice S.A. Dharmadhikari and Justice G. Arul Murugan had directed the Tamil Nadu Directorate of Vigilance and Anti-Corruption (DVAC) to transfer all case-related records to the CBI and ordered that an officer be appointed to head the investigation within two weeks.

The Madras High Court had also directed the state government, TANGEDCO and the DVAC to extend full cooperation to the central agency and ensure that all relevant documents are handed over promptly.

The petitions before the High Court were filed by Arappor Iyakkam and persons affiliated with various political parties, alleging that the authorities had failed to act on complaints seeking registration of an FIR in connection with the alleged scam.

The Madras High Court had rejected the state government’s contention that the pleas were politically motivated and not maintainable merely because the petitioners were linked to rival political parties.

Following the Madras High Court order, Dravida Munnetra Kazhagam leader Senthil Balaji denied any wrongdoing in the transformer procurement process and maintained that the tender procedures followed during his tenure were in line with norms in existence since 1987. He had stated that transformer procurement typically involved participation by more than 20 bidders and that the final decision was taken only after scrutiny by a technical committee and approval from the board. “The process is transparent and involves multiple layers of verification before issuing purchase orders," he had said.

Balaji had further accused opposition parties, including the All India Anna Dravida Munnetra Kazhagam and the Bharatiya Janata Party, of influencing investigative agencies for political purposes.

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