NGO alleges corruption in TANGEDCO; blames Senthil Balaji

Arappor Iyakkam, an anti-corruption NGO, on Thursday alleged corruption in the award of tenders for the supply of distribution transformers between 2021-2023 by TANGEDCO which led to a loss to the exchequer of Rs 397 crores and sought registration of a case against then Electricity Minister V Senthil Balaji, now under arrest in a money laundering case.

In its complaint submitted to the Directorate of Vigilance and Anti-Corruption (DVAC), the NGO said a criminal investigation should be initiated against Balaji, V Kasi, Financial Controller, TANGEDCO, and top bureaucrat and TANGEDCO CEO Rajesh Lakhoni among others.

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“This corruption requires immediate action from the investigating agencies as it directly affects the public interest. TANGEDCO has been suffering thousands of crores of losses year after year due to such corruption. The burden of such corruption is placed directly on the heads of the common people through the rise in electricity tariff,” the complaint said.

Jayaram Venkatesan of Arappor Iyakkam said the complaint is based on evidence collected through “objective analysis” of public tender data and field enquiries. The complaint talks about tenders floated for the supply of distribution transformers of 25 KVA, 63 KVA, 100 KVA, 200 KVA250 KVA and 500 KVA between 2021 and 2023.

Alleging that there seems to be no scientific basis for calculating the need for distribution transformers and market value for the tender, the complaint said around 450,00 distribution transformers were purchased in such a short time.

Venkatesan alleged that one of the key persons involved in “collusion and corruption in procurement of distribution transformers” Kasi, Financial Controller (Purchase). Kasi, who was suspended from TANGEDCO in 2020, was taken back in September 2021 by Lakhoni, in “violation of the service regulation.”

“There is zero competition as there are no competitive rates in the tender. However, he (Kasi) not only approved them but also approved them at rates much higher than the prevailing market rate and tender value creating a huge loss to the exchequer,” the complaint said, adding that Kasi was working out of the minister’s official residence.

The complaint sought a thorough investigation on the role of Balaji, Lakhoni and other public servants.