CBI has been directed to file its response within two weeks.

Madras HC seeks response from CBI on former TN ministers power purchase scam
news Corruption Saturday, July 16, 2016 - 08:19

The Madras High court on Friday issued notice to CBI on a petition seeking a probe by the central agency into alleged collusion of vigilance authorities on a complaint of corruption in Power Purchase deals under former Electricity Minister Natham R Viswanathan.

Justice R Subbaiah before whom the writ petition filed by one S P Sreenivas came up for hearing, directed CBI to file its response within two weeks.

The petitioner alleged that the former minister had abused his position in power purchase deals and with the help of the state-run TANGEDCO officials, caused a loss of around Rs 25,000 crore.

He submitted that he had already given a complaint on March 1 this year to the Directorate of Vigilance and Anti Corruption (DVAC) to prosecute the offenders. A criminal original petition was also filed in this regard in HC.

However, DVAC 'colluded' with the accused and it was "attempting to close the file" and hence he moved the court for a direction to CBI to probe the matter.

The petitioner alleged that to favour solar power generators, the former minister had allowed power purchase at the rate of Rs 7.01 per unit instead of Rs 5.01. He claimed that adjacent states purchased power at Rs.5.01 per unit.

The rate of Rs 7.01 fixed by the Tamil Nadu power regulatory body TNERC (Tamil Nadu Electriciy Regulatory Commission) was dissented by Nagalsamy, then member of Commission, he said.

Hence, the tariff order of TNERC should have been challenged by the state-run TANGEDCO, he contended.

The judge also said the present petition be clubbed with the criminal original petition already pending before the high court after taking permission from the Chief Justice.

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