The Supreme Court on Monday refused to stop a Central Bureau of Investigation (CBI) probe into an alleged ₹397-crore scam linked to the purchase of transformers in Tamil Nadu. The case is connected to the period between 2021 and 2023, when DMK leader V Senthil Balaji was the state’s electricity minister.
A bench of Justices Vikram Nath and Sandeep Mehta dismissed a petition that challenged an earlier order of the Madras High Court. The high court had ordered a CBI investigation into alleged irregularities in the purchase of 45,000 transformers by the Tamil Nadu government.
The Supreme Court said it would not interfere with the high court’s decision. However, it also made clear that the investigation should continue independently and should not be influenced by any observations made earlier by the high court.
The decision is being seen as a setback for Senthil Balaji and officials connected with the Tamil Nadu Generation and Distribution Corporation, also known as TANGEDCO.
During the hearing, senior advocate Siddharth Dave appeared for a TANGEDCO official. He argued that the case was politically motivated. He also told the court that there was no direct request before the high court asking for a CBI investigation.
Dave said the high court should not have ordered a CBI probe on its own because the petitioners had not specifically asked for it.
But Justice Vikram Nath disagreed with this argument. The judge said courts have the power to order such investigations if they feel the situation requires it.
The bench observed that a court does not always need a formal request to direct an investigation by the CBI. According to the judges, the circumstances of the case are important.
After hearing the arguments, the Supreme Court said it was not willing to entertain the appeal against the Madras High Court order.
The court also stressed that the CBI must conduct the investigation fairly and independently. It said the agency should reach its conclusions only on the basis of evidence and law.
The case relates to allegations that the Tamil Nadu government suffered a loss of ₹397 crore during the procurement of transformers between 2021 and 2023.
The Madras High Court had passed the order for a CBI probe on April 29 this year. The court directed that all complaints related to the alleged scam should be handed over to the central agency for detailed investigation.
The high court had also instructed the Directorate of Vigilance and Anti-Corruption (DVAC) to transfer all documents related to the case to the CBI within two weeks.
The CBI was further directed to complete the investigation as quickly as possible and take action according to law.
The high court also asked TANGEDCO, the Tamil Nadu government, and the DVAC to fully cooperate with the CBI during the probe.
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The allegations were raised in petitions filed by NGO Arappor Iyakkam and AIADMK legal wing members E Saravanan and Rajkumar.
The petitioners claimed that serious irregularities took place during the purchase of 45,000 transformers when Senthil Balaji was the electricity minister in the DMK government.
According to them, the tender process was manipulated, causing huge losses to the state treasury.
They alleged that the government paid much higher prices than necessary for the transformers. They demanded an independent inquiry into the matter.
Arappor Iyakkam had originally sought a Special Investigation Team (SIT) inquiry, while the AIADMK functionaries directly demanded a CBI investigation.
The Madras High Court finally decided that the CBI should handle the case because of the seriousness of the allegations and the large amount of public money involved.
After the high court’s decision in April, Senthil Balaji defended the procurement process. He said all rules and procedures were properly followed.
Balaji maintained that there were no irregularities in the purchase of transformers.
He also said that the procurement procedures followed by the Tamil Nadu government had been in use since 1987 and continued under different governments over the years.
The DMK leader claimed that the allegations were politically motivated and intended to target him and the ruling party.
The case has attracted political attention because Senthil Balaji has already faced other investigations by central agencies in recent years.
Opposition parties, especially the AIADMK, have accused the DMK government of corruption and demanded strict action in the transformer procurement case.
Meanwhile, the ruling DMK has often accused central agencies of selectively targeting opposition leaders in states ruled by non-BJP parties.
Despite the political debate, the Supreme Court’s latest order means the CBI investigation will now continue without interruption.
The central agency is expected to examine tender documents, financial records, purchase approvals, and communications linked to the transformer procurement process.
Officials and companies connected with the contracts may also be questioned during the investigation.
The outcome of the probe could become politically important in Tamil Nadu, especially as corruption allegations often become major issues during elections.
For now, the Supreme Court’s refusal to interfere has strengthened the legal backing for the CBI investigation, allowing the agency to move ahead with a detailed inquiry into the alleged ₹397-crore transformer purchase scam.
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