Madras HC orders CBI probe into alleged money laundering in procuring transformers
The Madras High Court has ordered the CBI to take over the investigation into alleged money laundering worth ₹397 crore in the procurement of distribution transformers by Tangedco between 2021 and 2023. The court directed the state's DVAC to hand over all related records and emphasized that the CBI probe must be conducted earnestly and expeditiously. The order followed petitions by an NGO and an AIADMK member alleging bid rigging and cartelization in tenders worth over ₹1,182 crore. The petitioners claimed transformers were bought at prices up to 50% above market rates, causing significant financial loss.
- ▪The Madras High Court ordered the CBI to investigate alleged ₹397 crore money laundering in Tangedco's transformer procurement between 2021 and 2023.
- ▪The court directed the state DVAC to transfer all case records to the CBI for the probe.
- ▪Petitioners alleged cartelization in tenders, with over 30 companies quoting identical prices down to decimal points in multiple bids.
- ▪Tangedco reportedly purchased transformers at up to 50% above market rates, leading to the alleged financial loss.
- ▪The NGO Arappor Iyakkam had filed a complaint with DVAC in July 2023, but no case was registered for over 30 months.
Opening excerpt (first ~120 words) tap to expand
Madras HC orders CBI probe into alleged money laundering in procuring transformersThe bench directed the State Directorate of Vigilance and Anti-Corruption (DVAC) that had been probing the matter until now, to “hand over” all papers and records related to the case to CBIPublished on: Apr 29, 2026 11:49 AM ISTBy Ayesha ArvindShare viaCopy link The Madras High Court on Wednesday ordered a probe by the Central Bureau of Investigation (CBI) into allegations of ₹397 crore money laundering in the procurement of distribution transformers by the Tamil Nadu Generation and Distribution Corporation (Tangedco) between 2021 and 2023.The bench also said the CBI must conduct its probe “earnestly and expeditiously.” (Representative file photo)A bench of Chief Justice SA Dharmadhikari and Justice G Arul…
Excerpt limited to ~120 words for fair-use compliance. The full article is at Hindustan Times — Top.
Discussion
0 commentsMore from Hindustan Times — Top
