TNPDCL denies Rs 397 crore loss in transformer procurement before Madras High Court

CHENNAI: Tamil Nadu Power Distrbution Corporation Ltd (TNPDCL), successor entity of Tamil Nadu Generation and Distribution Corporation (Tangedco), has informed the Madras High Court that the allegation of causing a loss of Rs 397 crore in the procurement of transformers was merely speculative and not supported by any evidence.

Arappor Iyakkam and AIADMK functionary E Saravanan have sought a direction to register an FIR and constitute a Special Investigation Team (SIT) under HC supervision to probe the alleged scam.

It was contended that in 2021-2023, nearly 28,000 transformers were procured, resulting in an alleged loss of Rs 397 crore to the State exchequer. Arappor Iyakkam and Saravanan had filed PILs before the HC alleging irregularities in the procurement of 28,000 transformers in TN and claiming that the process had resulted in a loss of Rs 397 crore. They sought directions to the Directorate of Vigilance and Anti-Corruption (DVAC) to constitute a SIT to probe the alleged irregularities.

In response to the petitions, the respondents along with the Tender Inviting Authority and the Tender Scrutiny Committee, filed a counter affidavit stating that the allegations were baseless and contrary to facts. It further stated that the petitions had been filed without a proper understanding of the tender procedures mentioned in the documents and were intended to spread defamatory allegations.

TNPDCL also stated that negotiations were held with the participating companies in the tender, which resulted in a price reduction. Owing to these negotiations, the procurement of transformers had, in fact, resulted in savings of several crores. So, the allegation that the procurement had caused a loss of Rs 397 crore was purely speculative and unsupported by admissible materials.

The respondents also submitted that all relevant documents had been furnished to the DVAC for its inquiry and that TNPDCL was extending full cooperation in the matter.

When the matter came up for hearing before a Bench comprising Chief Justice Sushrut Arvind Dharmadhikari and Justice G Arul Murugan, they granted time to the petitioners to file their reply to the government’s counter affidavit and adjourned the hearing to March 17.