Andhra Pradesh High Court Orders Probe into Transformer Procurement Irregularities
AP High Court Orders Probe into Transformer Procurement Irregularities

Andhra Pradesh High Court Demands Answers on Transformer Procurement

The Andhra Pradesh High Court has taken a firm stance on allegations of irregularities in the procurement of electrical transformers by state discoms. On Wednesday, the court issued formal notices to the state government, directing it to file a detailed counter affidavit in response to a Public Interest Litigation (PIL) filed by former DGP-rank officer A B Venkateswara Rao.

PIL Seeks CBI Investigation into Alleged Corruption

The PIL specifically requests directions for a comprehensive probe by the Central Bureau of Investigation (CBI) into what the petitioner describes as systematic irregularities in transformer purchases. Senior counsel B Adinarayana Rao, arguing on behalf of the petitioner, presented compelling evidence before the HC bench headed by Chief Justice Dhiraj Singh Thakur and Justice Challa Gunaranjan.

The core allegation revolves around what the petitioner claims are tailor-made tender norms designed specifically to benefit Shirdi Sai Electricals. According to the PIL, these manipulated procurement processes have resulted in transformers being purchased at exorbitant prices, significantly above market rates.

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Staggering Price Discrepancies Revealed

The most striking evidence presented in court concerns dramatic price variations between Andhra Pradesh and neighboring states. The petitioner revealed that AP discoms purchased 2-star BIS standard transformers for approximately Rs 1.4 lakh each, while the identical transformers were procured by Telangana discoms for just Rs 85,000 - a staggering difference of Rs 65,000 per unit.

"Similar concerning price variations have been documented in other states including Chhattisgarh," the petitioner claimed during proceedings. According to the PIL, this questionable modus operandi began during the YSRCP regime in 2022 and has continued uninterrupted since, allegedly causing massive losses to the state exchequer.

Additional Irregularities in Procurement Process

The petitioner further highlighted additional irregularities in the procurement of 5-star-rated transformers. Despite tender notifications specifically calling for 5-star-rated BIS standard transformers, purchase orders were allegedly issued for EEL-3 transformers instead.

"The norms appear to have been deliberately designed to eliminate competition," the petitioner argued, suggesting that qualification criteria were structured in such a way that only specific companies could participate, effectively disqualifying other potential bidders.

Government Questions Petitioner's Motives

Advocate General Dammalapati Srinivas, representing the state government, raised questions about the petitioner's bona fides during the hearing. He specifically challenged why Rao had remained silent for years since the alleged procurement irregularities began in 2022, only to publicize the PIL filing now.

"Given the multiple complex issues raised in this petition, we require adequate time to submit comprehensive details and documentation," Srinivas argued before the court, requesting additional time for the government's response.

High Court Orders Technical Inspection and Threatens Transaction Cancellation

After considering arguments from both sides, the High Court announced it would issue orders for an independent inspection by technical experts from the Bureau of Indian Standards (BIS). These experts will specifically test whether the transformers supplied to AP discoms actually meet the specifications outlined in the original tender norms.

The court has also demanded that the state government provide a detailed explanation for the significant price variations between transformers of identical specifications purchased by different states. In a strongly worded statement, the bench indicated it would not hesitate to cancel the entire transaction if the investigation reveals substantial irregularities.

This case represents a significant development in ongoing efforts to ensure transparency and accountability in government procurement processes, particularly in critical infrastructure sectors like electrical distribution.

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