In a significant legal blow to former Tamil Nadu minister V Senthil Balaji, the Supreme Court on Monday refused to interfere with a Madras High Court order directing a Central Bureau of Investigation (CBI) probe into alleged irregularities in the procurement of 45,000 transformers. The case involves an alleged scam amounting to ₹397 crore during Balaji’s tenure as the State Electricity Minister between 2021 and 2023.
A Bench comprising Justice Vikram Nath and Justice Sandeep Mehta declined to entertain a Special Leave Petition (SLP) challenging the High Court’s April 29 direction. The Bench emphasized that the investigation should proceed independently, uninfluenced by any specific observations made by the High Court in its earlier order.
The controversy centers on the procurement of 45,000 distribution transformers by the Tamil Nadu Generation and Distribution Corporation (TANGEDCO). It is alleged that the state exchequer suffered a loss of ₹397 crore due to irregularities in the tender process during the DMK government’s tenure.
The Madras High Court had initiated the CBI inquiry following petitions filed by the NGO Arappor Iyakkam, which sought a Special Investigation Team (SIT) probe, and AIADMK legal wing functionaries E Saravanan and Rajkumar, who specifically requested a CBI investigation. In its ruling, the High Court directed the Directorate of Vigilance and Anti-Corruption (DVAC) to hand over all case-related documents to the CBI within two weeks for an expedited investigation.
Senior Advocate Siddharth Dave, representing a TANGEDCO official, argued that the High Court’s direction was “politically motivated.” He further contended that there was no specific prayer or formal request before the High Court specifically seeking a CBI investigation in the manner it was granted.
However, the Supreme Court Bench dismissed this technical objection. “We don’t need a prayer. It depends upon how the court feels,” Justice Nath observed, affirming that courts possess the power to direct such probes if the circumstances of a case warrant higher-level scrutiny.
Following the High Court’s initial order, Senthil Balaji maintained that all procedures in the tender process were duly followed. He defended the procurement, stating that the methods used had been consistent since 1987 and that no irregularities were committed during his leadership of the ministry.
While refusing to stay the probe, the Supreme Court clarified that the CBI must conduct its investigation strictly on the merits of the evidence. The court ordered that TANGEDCO, the DVAC, and the Tamil Nadu government must extend full cooperation to the central agency.
With this dismissal, the CBI is set to take over the case files from the state’s anti-corruption wing to begin a fresh and detailed investigation into the alleged financial losses.
