Madras High Court Delivered Common Order in Writ Petitions Seeking FIR Registration and SIT Investigation into Alleged Cartelization in TANGEDCO Transformer Tenders. The Court Examined Allegations of Identical Bidding and Inflated Procurement Costs Causing Loss of Rs.397 Crores to Public Exchequer.

High Court: Madras High Court
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Case Note & Summary

The judgment pertains to three writ petitions filed under Article 226 of the Constitution of India, heard analogously by the Madras High Court. The petitioners sought issuance of writs of mandamus directing the Directorate of Vigilance and Anti-Corruption to register First Information Reports on their complaints and to constitute a Special Investigation Team to conduct time-bound, independent, and court-monitored investigations into alleged corruption in the procurement of electrical Distribution Transformers by the Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO). The petitioners, including a public interest organization and political party members, contended that during the period 2021 to 2023, TANGEDCO invited multiple tenders for transformers of varying specifications, and the entire tender process was vitiated by cartelization among bidders. In seven out of ten examined tenders, all participating bidders quoted identical rates up to the last decimal point, indicating collusion. The Tender Scrutinizing Committee allegedly failed to exercise due diligence, did not reject the tenders, and instead negotiated with bidders, splitting the orders equally and awarding contracts at exorbitantly high rates. This caused a significant loss to the public exchequer, estimated at approximately Rs.397 crores, leading to unjust enrichment of private parties. The complaints specifically named certain public officials and private individuals, including a former Minister, alleging their active involvement. Despite the gravity and specificity of the allegations, the authorities allegedly failed to register an FIR for over three years, conducting only a limited preliminary enquiry against a single person while ignoring others named. The petitioners argued that this non-registration violated the mandatory duty under the law as laid down by the Supreme Court in Lalita Kumari v. Government of Uttar Pradesh. They sought the constitution of a Special Investigation Team given the high-profile nature and involvement of senior officials and political figures. The respondents, represented by senior counsels including the Advocate General, presumably opposed the petitions, though their specific arguments are not detailed in the extract. The High Court delivered a common order disposing of the writ petitions. However, the final directions and reasoning of the court are not included in the provided text.

Issue of Consideration

Whether the respondents should be directed to register an FIR based on complaints and constitute a Special Investigation Team to investigate allegations of corruption in TANGEDCO procurement.

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Case Details

2026 LawText (MAD) (04) 10

W.P. No. 8166 of 2024, W.P.(Crl.) No. 396 of 2025, W.P.(MD) No. 26676 of 2025

2026-04-29

Sushrut Arvind Dharmadhikari, G. Arul Murugan

2026:MHC:1636

Dr. V. Suresh, V. Raghavachari, A.G. Vedavikas, N.R. Elango, P. Kumaresan, P.S. Raman, V. Karthic, J. Srinivasa Mohan

Arappor Iyakkam, E. Saravanan, Rajkumar

The Director, Directorate of Vigilance and Anti-Corruption, The Secretary to Government, Public Department, V. Kasi, Rajesh Lakhoni, V. Senthil Balaji

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Nature of Litigation

Writ petitions under Article 226 of the Constitution seeking mandamus to register FIR and constitute a Special Investigation Team to investigate alleged corruption in procurement of distribution transformers by TANGEDCO.

Remedy Sought

Petitioners sought direction to the first respondent (Director, Directorate of Vigilance and Anti-Corruption) to register an FIR on their complaints and to constitute a Special Investigation Team for time-bound, independent, High Court monitored investigation under the Prevention of Corruption Act, 1988 and other relevant laws.

Filing Reason

Complaints were filed alleging massive corruption in TANGEDCO tender process involving cartelization, quoting identical rates, and awarding contracts at exorbitant rates causing loss of approximately Rs.397 Crores to the public exchequer. Despite complaints, authorities delayed registration of FIR and conducted only preliminary enquiry against a single person, ignoring many named in complaints.

Issues

Whether the authorities are bound to register an FIR based on complaints disclosing cognizable offences and whether the delay in registration is justified. Whether a Special Investigation Team should be constituted to investigate the allegations of corruption in TANGEDCO transformer procurement.

Submissions/Arguments

Petitioners argued that respondents failed to register FIR despite complaints of cognizable offences, violating Lalita Kumari v. Government of Uttar Pradesh. They claimed organized cartelization in TANGEDCO tenders leading to exorbitant procurement costs and loss to exchequer.

Judgment Excerpts

The core of this controversy centers on the procurement process for electrical Distribution Transformers of varying capacities. The petitioners contend that these contracts were awarded at exorbitant rates, significantly surpassing prevailing market valuations, resulting in a substantial and unjustifiable loss to the public exchequer. Despite complaints detailing specific allegations of malfeasance against the parties involved, the relevant authorities have failed to register the FIR and conducted a detailed enquiry in the garb of preliminary enquiry against a single person, ignoring even a preliminary enquiry against many other persons named in the complaints, with inordinate and unexplained delay of over three years. the first respondent has not registered an FIR as mandated by law and the first respondent acted in violation of law laid down by the Supreme Court in the case of Lalita Kumari v. Government of Uttar Pradesh and others

Procedural History

The petitioner in W.P. No. 8166 of 2024 filed complaint on 06.07.2023 before the Director, Directorate of Vigilance and Anti-Corruption. DVAC responded on 22.08.2023 that necessary action would be taken but no FIR was registered. The petitioner filed the writ petition seeking mandamus to register FIR and constitute SIT. Subsequently, two more writ petitions were filed by other petitioners with similar grievances regarding TANGEDCO transformer procurement, which were heard together.

Acts & Sections

  • Constitution of India: Article 226
  • Prevention of Corruption Act, 1988:
  • Indian Penal Code:
  • Tamil Nadu Transparency in Tenders Act, 1998:
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