NGO levels Rs 1,500 crore corruption charges against civil supplies corporation

“The Corporation is procuring sugar, dhal and oil at a rate higher than the prevailing market rate, resulting in a loss of Rs 1,480 crore to the government,” alleged Jayaram Venkatesan, convenor of Arappor Iyakkam.

In July 2019, the TNCSC allegedly procured sugar at a rate of Rs 47.5 per kg while the market rate was only Rs 37.85. Similarly, Palmolein oil was procured at Rs 78.95 per pouch against its market rate of Rs 61.35. “During the same period, dhal was procured at Rs. 86.5 per kg against its market rate of Rs. 58,” he said.

According to the activist, TNCSC modified tender conditions to allow one particular group to participate in the bidding processes to supply dhal, palm oil and sugar. Also, a particular company had been given bids in different names, as the other contractors are prohibited by new conditions.

“This practice started five years ago. Before that, several bidders were able to participate in the bidding process which ensured competitiveness. Now, due to the lack of competition, the rates are fixed higher. Despite winning the bids, the firm had let sub-contract to the contractors to supply the items. State Trading Corporation, MMTC and Kendriya Bhandar (Employees Consumer Cooperative Society Ltd) also should be inquired,” Jayaram said.

Jayaram urged the CBI to register an FIR based on the complaint and evidence submitted. If the agency failed to do that, the organisation would approach the Court, he added. “The Chief Minister should take action against Food and Civil Supplies Minister R Kamaraj and TNCSC director Sudha Devi,” he demanded.