TN Anti-Corruption Group Claims Rs 992 Crore Scam, Files Complaint with Central Agencies
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Synopsis
On March 11, Chennai-based anti-corruption NGO Arappor Iyakkam filed a complaint with several agencies regarding a Rs 992 crore corruption scandal in Tamil Nadu's food and civil supplies sector. The complaint implicates multiple companies and government officials in fraudulent activities linked to inflated transport tenders.
Key Takeaways
- Arappor Iyakkam has lodged a complaint regarding a Rs 992 crore scam.
- Accusations involve collusion between private firms and government officials.
- Inflated transport tenders led to significant losses for the state.
- Previous scams related to the Christy Friedgram Group are under investigation.
- Public funds could be better utilized if the current tender is canceled.
Chennai, March 11 (NationPress) The Chennai-based anti-corruption organization Arappor Iyakkam has formally submitted a comprehensive complaint to various investigative authorities, calling for an inquiry into an alleged Rs 992 crore corruption scandal within Tamil Nadu's food and civil supplies sector.
This complaint was directed to the Central Bureau of Investigation (CBI), the Enforcement Directorate (ED), the Directorate of Vigilance and Anti-Corruption (DVAC), and the Director General of Income Tax (Investigation), alleging financial misconduct connected to inflated transport tenders.
During a press briefing at the Chennai Press Club, Arappor Iyakkam convener Jayaram Venkatesan accused three firms -- Muruga Enterprises, Kandasamy & Co., and Karthikeya Enterprises -- of obtaining transport contracts at exorbitantly inflated prices, resulting in significant losses to the state's treasury.
These companies are reportedly under the ownership of T.S. Kumarasamy from the Christy Friedgram Group.
The complaint asserts that these firms, in collaboration with officials from the Tamil Nadu Food and Civil Supplies Department, the Tamil Nadu Civil Supplies Corporation (TNCSC), and the Food Corporation of India (FCI), were granted contracts at rates that exceeded market value by 107 percent.
The NGO claims these fraudulent tenders were sanctioned shortly after the BJP-led NDA government's resurgence in power at the Center in 2024.
A detailed 40-page complaint, accompanied by 565 pages of supporting documents, has been dispatched to key figures, including Tamil Nadu Chief Minister M.K. Stalin, state and Central Food Ministers, the Finance Secretary, and senior government officials.
Venkatesan emphasized the immediate repercussions of the alleged corruption, particularly for ration card holders who frequently encounter shortages of vital goods.
He stated that ration items often deplete within the first week of the month, leaving numerous citizens without access to their entitled provisions.
The NGO argues that these supply shortages stem directly from financial mismanagement and profiteering by private companies masquerading as government contractors.
This isn't the first instance of Arappor Iyakkam raising alarms about the Christy Friedgram Group's operations.
In 2021, the organization uncovered a Rs 2,028 crore scam related to the procurement of ration items, which is still under investigation.
The current controversy centers around a transportation tender issued in June 2023 for the movement of rice across Tamil Nadu's 38 districts.
The contract, which covers transport from procurement centers to storage, milling, and distribution points, was awarded at an astounding Rs 598 per metric ton -- Rs 310 more than the initial tender price.
Prior to 2020, local truck operators transported rice for Rs 200 to 250 per metric ton for short distances (up to five km).
However, in 2020, the Tamil Nadu government awarded a statewide transport contract to Zinc Foods, a subsidiary of the Christy Friedgram Group, at a significantly inflated rate of Rs 640 per metric ton for the same distance.
While this price surge did not directly impact local transporters, it allegedly allowed the Christy Group to gain substantial profits of Rs 350 to 400 per metric ton at the expense of the government.
The state government eventually rescinded the contract within three years, but the group’s renewed involvement in the 2023-2025 transportation contract has reignited concerns over financial misconduct.
Venkatesan has called for the immediate cancellation of the current tender, arguing that nearly Rs 1,000 crore in public funds could be better utilized to enhance access to essential goods and bolster education initiatives.
In a statement, Arappor Iyakkam accused both the BJP-led Central government and the DMK-led state government of facilitating corruption, asserting that their political rivalry is merely a cover while they collaborate on fraudulent ventures.
The organization has urged the media and civil society to exert pressure on authorities to conduct a thorough investigation and hold accountable those responsible.
