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Court directs DVAC to hand over all records as petitioners allege cartelisation, inflated prices and major loss to state exchequer in transformer procurement
April 29, 2026: The Madras High Court has ordered a Central Bureau of Investigation (CBI) probe into allegations of ₹397 crore financial irregularities in the procurement of distribution transformers by Tamil Nadu Generation and Distribution Corporation between 2021 and 2023. The bench directed the State Directorate of Vigilance and Anti-Corruption (DVAC) to hand over all records related to the case to the CBI and instructed that the investigation be conducted “earnestly and expeditiously.”
The order came on petitions filed by Chennai-based NGO Arappor Iyakkam and AIADMK leader E Saravanan, who sought an independent probe into alleged tender manipulation. The petitioners claimed that tenders worth ₹1,182.88 crore for 45,800 transformers showed signs of cartelisation, with multiple firms allegedly quoting identical prices and later reducing bids in a coordinated manner, suggesting collusion and price fixing.
They further alleged that transformers were purchased at prices up to 50% above market rates, causing losses of around ₹397 crore to the state exchequer. The DVAC had reportedly not registered a full case despite a complaint filed in 2023. The state government, however, denied the allegations and argued that the petition was politically motivated. The court had earlier questioned officials over tender approvals despite alleged irregularities before ordering the CBI investigation.