TN anti-corruption NGO alleges Rs 992 crore scam, approaches central agencies

Chennai: Chennai-based anti-corruption watchdog Arappor Iyakkam on Tuesday lodged a detailed complaint with multiple investigative agencies, urging them to probe an alleged Rs 992 crore corruption scam in Tamil Nadu's food and civil supplies sector.

The complaint, submitted 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), accuses several entities of financial misappropriation linked to inflated transportation tenders.

At a press conference held at the Chennai Press Club, Arappor Iyakkam convener Jayaram Venkatesan alleged that three companies -- Muruga Enterprises, Kandasamy & Co., and Karthikeya Enterprises -- secured transport tenders at highly inflated rates, leading to massive losses to the state exchequer.

The firms are reportedly controlled by T.S. Kumarasamy of the Christy Friedgram Group.

According to the complaint, these companies, in collusion 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 awarded contracts at rates 107 per cent above market value.

The NGO claims these fraudulent tenders were approved within a month of the BJP-led NDA government's return to power at the Centre in 2024.

The 40-page complaint, supplemented with 565 pages of supporting documents, has been sent to key stakeholders, including Tamil Nadu Chief Minister M.K. Stalin, state and Central Food Ministers, the Finance Secretary, and senior government officials.

Venkatesan highlighted the direct consequences of the alleged corruption, particularly for ration card holders who face frequent shortages of essential commodities.

He said that ration items often run out within the first seven days of the month, leaving many citizens unable to access their entitlements.

The NGO claims that these supply shortages are a direct result of financial mismanagement and profiteering by private entities operating under the guise of government contracts.

This is not the first time Arappor Iyakkam has raised concerns about the Christy Friedgram Group's dealings.

In 2021, the organisation exposed a Rs 2,028 crore scam related to ration item procurement, which remains under investigation.

The latest controversy revolves around a transportation tender issued in June 2023 for the movement of paddy across Tamil Nadu's 38 districts.

The contract, covering transport from procurement centres to storage, milling, and distribution hubs, was awarded at a staggering Rs 598 per metric ton -- Rs 310 more than the original tender price.

Before 2020, local lorry operators transported paddy for Rs 200 to 250 per metric ton for short distances (up to five km).

However, in 2020, the Tamil Nadu government awarded a state-wide transport contract to Zinc Foods, a subsidiary of the Christy Friedgram Group, at a significantly higher rate of Rs 640 per metric ton for the same distance.

Although, this price hike did not impact local transporters directly, it allegedly allowed the Christy Group to pocket a substantial profit of Rs 350 to 400 per metric ton at the government's expense.

The state government eventually cancelled the contract within three years, but the group's renewed involvement in the 2023-2025 transportation contract has reignited concerns over financial malpractices.

Venkatesan has demanded the immediate cancellation of the current tender, arguing that nearly Rs 1,000 crore in public funds could be redirected toward improving access to essential commodities and strengthening education programs.

In a statement, Arappor Iyakkam accused both the BJP-led Central government and the DMK-led state government of enabling corruption, alleging that their political rivalry is merely a façade while they work together on fraudulent deals.

The organisation has called on the media and civil society to apply pressure on authorities to conduct a thorough investigation and hold those responsible accountable.

IANS