4 min readNew DelhiMay 12, 2026 02:52 AM IST
THE SUPREME Court on Monday dismissed appeals challenging the Madras High Court order directing a CBI investigation into an alleged Rs 397 crore-scam in the purchase of transformers by the Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) between 2021 and 2023 when V Senthil Balaji was the electricity minister.
A bench of Justices Vikram Nath and Sandeep Mehta refused to entertain the appeals challenging the April 29, 2026 High Court order transferring the probe from the TN Directorate of Vigilance and Anti-Corruption (DVAC) to the CBI.
Though the appellants contended that there was no prayer before the HC seeking a CBI investigation, the SC said courts can order CBI probe even without any such prayer. “We don’t need a prayer. It depends upon how the court feels,” the court said. The bench clarified that the investigation shall not be influenced by the observations made by the High Court.
The Madras HC order came on a plea by NGO Arappor Iyakkam and some AIADMK members.
The HC said though the NGO had sought criminal investigation against public servants of TANGEDCO, including Financial Controller V Kasi, Chairman and Managing Director Rajesh Lakhoni, firms allegedly involved in the corruption, Balaji and other public servants, the government accorded prior approval for conducting enquiry only against Kasi.
It said the state authorities “have failed to provide any explanation or justification for their decision to refrain from taking action against the other individuals. Despite the allegations levelled against these parties, the specific reasoning or evidence that influenced the authorities’ choice to exclude them from the current proceedings remains entirely undisclosed.”
The HC said though DVAC asked for approval to conduct a detailed enquiry, the government granted approval only for preliminary enquiry.
Story continues below this ad
“We find that the timeline for providing prior approval as per Section 17A of the Prevention of Corruption Act is only three months with provision of extension by a maximum of one month. The huge delay in providing prior approval is unexplained,” said the HC.
It said “the excessive and unjustified delay in granting permission, coupled with the decision to downgrade the investigation from a detailed enquiry [without registration of an FIR] to a preliminary enquiry and limit its scope solely to Kasi, strongly suggests an attempt by the government and relevant authorities to suppress the truth and these actions create a reasonable suspicion of a cover-up designed to shield high-ranking officials and political figures, thereby undermining the integrity of a free, independent and fair investigation.”
“Considering the fact that the matter was pending consideration for over three years and was abruptly concluded while the court was hearing the case, coupled with unexplained delays that exceeded all legal timelines, we are of the view that the entire process is fundamentally biased and devoid of the essential standards of fairness,” said the court.
Transferring the probe to CBI, the HC said, “In the present case, the procedures adopted by both the state and the DVAC are so heavily marked by unfairness that they fail to inspire any public confidence, creating an absolute necessity for an independent enquiry to ensure the integrity of the investigation. All the allegations levelled in the complaints concern public contracting under the authority of the state and are directed against persons who occupy high constitutional and political office in the state. In such circumstances, leaving the matter to be investigated by agencies that function under the administrative control of the state would raise a serious and reasonable apprehension in the public mind about institutional independence… An investigation must be not only fair, but must also appear fair.”
© The Indian Express Pvt Ltd
