SC Refuses to Stall CBI Probe Into ₹397 Crore Tamil Nadu Transformer Procurement Scam

May 12, 2026 : The Supreme Court on Tuesday refused to interfere with the Madras High Court’s order directing a CBI investigation into the alleged ₹397 crore transformer procurement scam in Tamil Nadu linked to the tenure of former Electricity Minister V Senthil Balaji between 2021 and 2023. The case relates to alleged irregularities in the purchase of 45,000 distribution transformers by the Tamil Nadu Generation and Distribution Corporation (TANGEDCO).

A Bench comprising Justices Vikram Nath and Sandeep Mehta declined to entertain the plea challenging the High Court’s direction for a CBI probe. During the hearing, senior advocate Siddharth Dave, appearing for a TANGEDCO official, contended that there was no specific plea before the Madras High Court seeking a CBI investigation and argued that the proceedings were politically motivated.

The apex court, however, observed that constitutional courts possess the authority to order an independent investigation if the facts and circumstances of a case justify such action. While dismissing the plea, the Supreme Court clarified that the CBI should carry out the investigation independently and without being influenced by any observations made by the High Court in its order.

Earlier, on April 29, the Madras High Court had directed the Central Bureau of Investigation to conduct a fresh probe into the alleged irregularities in the procurement process. The High Court also ordered the Directorate of Vigilance and Anti-Corruption (DVAC) to transfer all relevant records and documents connected to the case to the CBI within two weeks.

In addition, the High Court directed TANGEDCO, the DVAC and the Tamil Nadu government to extend full cooperation to the central agency during the course of the investigation.