NGO alleges 992cr scam in TNCSC tender TNN

NGO alleges 992cr scam in TNCSC tender TNN

| Jul 11, 2025, 04.23 AM IST

Chennai: Volunteers of Arappor Iyakkam, an Anti-corruption NGO, protested in Koyambedu on Thursday alleging a 992 crore scam in the Tamil Nadu Civil Supplies Corporation (TNCSC). Volunteers, who held placards naming it Tamil Nadu ‘Christy’ Supplies Corporation, accused the agency of awarding transport tenders to benami firms at inflated rates.

A formal complaint was submitted in March to DVAC (Directorate of vigilance and anti-corruption) and the chief minister, said Arappor Iyakkam convenor Jayaram Venkatesan. “No action has been taken,” he said.

Instead, the department awarded tenders to Christy Friedgram Company across 39 districts in Tamil Nadu through benami firms Muruga Enterprises, Kandasamy and Co., and Karthikeya Enterprises in 2024 at a rate of 598/tonne, according to Jayaram Venkatesan. “This is a 107% increase from the previous rate of 288. The hike resulted in a direct loss of 310/tonne. TNCSC transports 40 lakh tonnes of paddy annually in at least four trips. The annual loss is estimated at 496 crore, totalling 992 crore more than two years,” he said.

Arappor said cancellation of the tenders could save 400 crore-500 crore in public funds. The tender notice, published in June 2023, said the contract would end in June 2025. Supply orders issued later extended the agreement until July 2026, without public notification or open bidding, he said. “Our investigation revealed that experienced contractors were deliberately disqualified, and Christy Friedgram Company was awarded tenders in all 39 divisions, despite lacking credentials,” Jayaram added.

The group has been demanding the cancellation of the tenders and the initiation of a transparent re-tendering process open only to qualified firms. They have also urged the chief minister to uphold public accountability by filing an FIR, launching an impartial investigation, and recovering more than 400 crore in lost public funds.

Police have not registered any formal charges against the protestors. “They were detained to prevent disruption of public order and were later released,” police said.