CHENNAI: The Madras High Court on Wednesday directed the Directorate of Vigilance and Anti-Corruption (DVAC) to place on record documents relating to the preliminary enquiry into alleged irregularities in the procurement of transformers by the Tamil Nadu Generation and Distribution Corporation Limited (Tangedco).
Public interest petitions were filed by Arappor Iyakkam and AIADMK functionary Saravanan seeking a direction to register a first information report and to constitute a special investigation team under the High Court's supervision to probe the alleged scam. The petitioners claimed that nearly 28,000 transformers were procured from 2021 to 2023, resulting in an alleged loss of Rs 397 crore to the State exchequer.
They alleged that there were prima facie materials to suspect the involvement of former electricity minister Senthilbalaji and the then Tangedco chairman and managing director Rajesh Lakhoni, among others.
When the matter was heard by a Division Bench of Chief Justice MM Shrivastava and Justice G Arul Murugan, Counsel V Suresh, appearing for the petitioners, submitted that contracts were awarded at inflated rates, resulting in huge losses to the State. He also said that despite a complaint being lodged in 2023, no action had been taken for over four months, prompting the filing of the petitions.
Advocate General PS Raman, appearing for the State, submitted that a preliminary enquiry by the DVAC was under way and the contracts were awarded in accordance with procedures followed since 1987 and that contractors had been quoting uniform prices for several years.
The Bench observed that the Supreme Court has held that in cases involving allegations of corruption, a preliminary enquiry is not mandatory, and that strict adherence to the law declared by the Apex Court could have avoided the present litigation. The court said that if preliminary enquiries are conducted in every case without any progression, it may impede the effective conclusion of proceedings.
Directing the state government to file its response within a week, it ordered the production of records relating to the award of tenders and documents about the preliminary inquiry and adjourned the matter for further hearing.