Madras HC orders CBI probe into ₹397 crore transformer tender scam under Senthil Balaji
Synopsis
The Madras High Court has ordered a CBI de novo probe into a ₹397 crore transformer tender scam linked to former Tamil Nadu minister Senthil Balaji — bypassing the state's own anti-corruption agency. The ruling signals deep judicial distrust of the DVAC's handling of the case and opens a second major legal front for Balaji, who already spent eight months in jail in a cash-for-jobs scam.
Key Takeaways
The Madras High Court on 29 April 2025 ordered a CBI probe into alleged ₹397 crore transformer tender irregularities.
The scam allegedly occurred during Senthil Balaji's tenure as Tamil Nadu's Electricity and Prohibition and Excise Minister between 2021 and 2023 .
The DVAC has been directed to transfer all case records to the CBI; a probe officer must be appointed within two weeks .
The court ordered a de novo investigation and rejected the state's argument that the petitions were politically motivated.
Senthil Balaji resigned from the cabinet on 13 February 2024 after spending eight months in custody in a separate cash-for-jobs scam case.
The Madras High Court on Wednesday, 29 April 2025, ordered the Central Bureau of Investigation (CBI) to probe alleged irregularities worth ₹397 crore in transformer tender procurements during the tenure of Senthil Balaji as Tamil Nadu's Electricity and Prohibition and Excise Minister between 2021 and 2023. The court directed the Tamil Nadu Directorate of Vigilance and Anti-Corruption (DVAC) to transfer all case-related records to the CBI immediately.
Key Directions from the Court
A Division Bench comprising Chief Justice S.A. Dharmadhikari and Justice G. Arul Murugan ordered a de novo investigation by the CBI based on available materials, stressing the need for an independent and comprehensive probe. The court further directed that an officer to head the investigation must be appointed within two weeks.
The Bench also instructed the state government, Tamil Nadu Generation and Distribution Corporation (TANGEDCO), and the DVAC to fully cooperate with the central agency and ensure all relevant documents are handed over promptly. A detailed written order in the case is still awaited.
Who Filed the Petitions and Why
The petitions were filed by civic group Arappor Iyakkam and members affiliated with various political parties, alleging that the state had failed to act on complaints seeking registration of an FIR against those involved in the alleged scam. The petitioners informed the court that repeated representations to the government had gone unanswered.
During earlier hearings, the Bench had sought details of the preliminary enquiry conducted by the DVAC, along with tender-related documents and other materials. Petitioners also argued that there was an undue delay in granting sanction under Section 17A of the Prevention of Corruption Act to prosecute the former minister.
State's Defence Rejected
The Tamil Nadu government maintained that the sanction under Section 17A had since been granted. It also opposed the petitions, contending they were politically motivated — filed by individuals linked to rival parties ahead of elections — and therefore not maintainable.
The court, however, rejected this argument outright, observing that serious allegations of financial irregularities cannot be dismissed merely on the basis of the petitioners' political affiliations. The Bench clarified that its observations were limited to the necessity of an independent investigation and would not influence the merits of the case.
Background: Senthil Balaji's Legal Troubles
Senthil Balaji resigned from the Tamil Nadu state cabinet on 13 February 2024, after spending eight months in judicial custody following his arrest by the Enforcement Directorate (ED) in a separate cash-for-jobs scam. The current CBI probe order adds a second major legal front for the former minister, this time centred on alleged procurement irregularities in the electricity sector during his ministerial tenure.
Notably, this is not the first time Tamil Nadu's procurement processes have come under judicial scrutiny, and the court's decision to bypass the state agency in favour of the CBI signals a significant lack of confidence in the DVAC's handling of the case so far. The CBI's investigation report, once submitted, is expected to shape the next phase of proceedings.
Point of View
And that a Section 17A sanction was delayed, suggests the state machinery was not moving with urgency — or intent. For a government already on the defensive over Senthil Balaji's cash-for-jobs arrest, a CBI-supervised de novo probe into its electricity ministry's procurement record is a significant political and legal liability. The real question now is whether the CBI, historically criticised for pace and political sensitivity, will deliver findings that match the court's evident expectations.
NationPress
1 May 2026
Frequently Asked Questions
What is the ₹397 crore transformer tender scam in Tamil Nadu?
It refers to alleged financial irregularities worth ₹397 crore in transformer procurement tenders awarded during Senthil Balaji's tenure as Tamil Nadu's Electricity and Prohibition and Excise Minister between 2021 and 2023. The Madras High Court has now ordered a CBI de novo investigation into the matter.
Why did the Madras High Court order a CBI probe instead of letting DVAC continue?
The court found it necessary to order an independent and comprehensive investigation, directing a de novo CBI probe after finding that the DVAC's handling of the case was inadequate. It also noted that petitioners' repeated representations to the state government had received no response.
Who filed the petitions and what did they allege?
The petitions were filed by civic group Arappor Iyakkam and members affiliated with various political parties. They alleged that the state had failed to register an FIR against those involved in the scam and that there was an undue delay in granting prosecution sanction under Section 17A of the Prevention of Corruption Act.
What is Senthil Balaji's current legal status?
Senthil Balaji resigned from the Tamil Nadu cabinet on 13 February 2024 after spending eight months in custody following his arrest by the Enforcement Directorate in a cash-for-jobs scam. The Madras HC's CBI probe order now opens a second major legal front for him.
What happens next in the CBI investigation?
The CBI must appoint a probe officer within two weeks of the court's order. The DVAC and state government are required to hand over all relevant documents promptly. The CBI is expected to conduct a de novo investigation and submit a report to the court.
