T.N. Govt to Decide on DVAC FIR in Transformer Procurement ‘Scam’, Informs Madras HC

Quick Summary

• The Tamil Nadu government informed the Madras High Court that a decision on granting permission to register an FIR regarding an alleged scam in transformer procurement during former Electricity Minister V. senthilbalaji’s tenure (2021-2023) would be made within a week or 10 days.
• The case pertains to alleged irregularities in tenders floated by Tangedco for the procurement of distribution transformers worth ₹1,182.88 crore between 2021 and 2023, leading to suspected losses of ₹397 crore due to collusive bidding and cartelization.
• Anti-corruption institution Arappor Iyakkam filed a writ petition demanding action by the Directorate of Vigilance and Anti-Corruption (DVAC) based on its two-year-old complaint, as well as urging for a High Court-monitored Special Examination team (SIT) probe into the matter.
• Arappor Iyakkam detailed allegations that multiple bidders quoted identical prices down to decimal points in seven out of ten tenders analyzed, suggesting intentional collusion.
• Former Minister Senthilbalaji, along with Tangedco chairman rajesh Lakhoni and Financial Controller V. Kasi,were named as respondents in the writ petition due to suspected involvement.

Read More

Indian Opinion Analysis

The allegations surrounding collusive bidding during transformer procurement raise critical questions about accountability and openness in public sector processes.If substantiated, losses amounting to ₹397 crore represent significant economic implications for taxpayers while undermining trust in tender mechanisms meant to ensure fair competition.

The Tamil nadu government’s assurance regarding imminent progress on registering an FIR provides hope for procedural action; however, it remains pivotal that investigations are conducted independently without undue delays or biases. Calls from civil society organizations like Arappor Iyakkam highlight the importance of vigilant third-party oversight of government expenditures.Collusive practices at such scales suggest systemic flaws requiring reforms not just within Tangedco but across public sector tendering norms statewide. A judicially monitored SIT probe may offer greater transparency while ensuring culprits face justice-thus serving as precedent against corruption.