DVAC raids 60 locations across Tamil Nadu over alleged Rs 1,028-crore Tangedco conductor fraud

CHENNAI: The Directorate of Vigilance and Anti-Corruption (DVAC) conducted searches at 60 locations throughout the state on Wednesday as part of its probe into alleged irregularities in the procurement of 2, 07, 495 km of aluminium conductors by Tangedco/TNPDCL.

Meanwhile, the searches covered the residences of TNPDCL authorities, other public servants, private individuals, aluminium conductor manufacturing businesses and offices of bidders. Tender-related documents, digital evidence, other incriminating materials and details of shell firms were seized.

Minister for Energy CTR Nirmal Kumar had remarked during the release of the white paper for TNEB in June this year that the department had identified alleged irregularities amounting to concerning `1, 028 crores in nine tenders pertaining to conductor procurement, independent of the ongoing CBI case pertaining to transformer procurement.

As amended in 2018, against unknown TANGEDCO/TNPDCL authorities, other public servants, private individuals and bidders, the raids were conducted based on a case was registered on June 30 under Sections 120-B (punishment of criminal conspiracy), 420 (cheating and dishonestly inducing delivery of property) and 409 (criminal breach of trust by public servant, or by banker, merchant or agent) of the IPC and Sections 13(1)(a) and 7(c) of the Prevention of Corruption Act, 1988.

Notably, the case followed a discreet inquiry conducted by the DVAC based on documents received from the managing director, TNEB. The inquiry disclosed prima facie information indicating a cognisable offence, according to an official release from DVAC.

While tender documents were uploaded from a common IP address, indicating feasible cartelisation in the tender process, according to the DVAC, multiple suppliers had quoted identical or similar rates. The final rates quoted were additionally higher.

In practice, the authorities and private individuals are suspected of colluding with suppliers, entering into a criminal conspiracy and misusing their official positions, allegedly causing loss to the administration exchequer.

For now, DVAC raids 60 locations across Tamil Nadu over alleged Rs 1, 028 remains the part of the story worth watching, and further updates are likely as more details are confirmed.