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.

Govt faces scrutiny over purchase of medicines without issuing tenders

Govt faces scrutiny over purchase of medicines without issuing tenders

 Min Says All Procedures Duly Followed

TIMES NEWS NETWORK 21.03.2025

Jaipur : Govt’s response to a starred question by Congress MLA Rafeek Khan Thursday showed that SN Medical College in Jodhpur purchased medicines worth Rs 5 crore in 2024-25 without going through the mandatory tendering process while medicine supplies worth Rs 28.5 crore were obtained through tenders. 

Responding to Khan’s question on the methods deployed to purchase medicines and healthcare equipment, health minister Gajendra Singh Khimsar said medical colleges and departments follow established regulations for purchases. He said that due to emergency reasons, purchases are sometimes made without tenders. Khimsar assured Khan that any complaints regarding irregularity will be thoroughly investigated. He promised to forward detailed information on this to Khan.

Khimsar’s written response clarified that some medicines were purchased without tenders from cooperative consumer centres and Pradhan Mantri Jan Aushadhi centres, and also locally for amounts under Rs 10,000. Urgent requirements necessitated some equipment purchases without tenders, he added. The medical department’s tender-based procurement for 2024-25 (until Feb 28) included medicines worth Rs 1,366.7 crore and equipment worth Rs 110.9 crore (until March 3). Khimsar announced that the IPD Tower at SMS Hospital in Jaipur will be completed and ready for commissioning by 2028, while the Cardiac Tower is expected to become operational in 3-4 months. The cardiac building at SMS Hospital will be operational within three to four months and offer cardiac services. The 28-storey IPD tower’s completion is scheduled for 2028

SWD, road tender graft: DVAC books Velumani, 10 corpn officials

SWD, road tender graft: DVAC books Velumani, 10 corpn officials

A.Selvaraj@timesofindia.com 18.09.2024 

Chennai : Former ministerS PVelumaniof the AIADMK and 10 serving and retired officials of Greater Chennai Corporation have been booked by Directorate of Vigilance and Anti-Corruption (DVAC) for alleged corruption in awarding storm water drain (SWD) and road work tenders in 2018. The FIR filed on Tuesday is the fourth by the state govt’s anti-corruption agency against Velumani since DMK came to power in 2021. 

The FIR against Velu- mani, who was local administration minister from 2014 to 2021, is based on petitions given by Jayaram Venkatesan, convenor of NGO Arappor Iyakkam. DVAC said Velumani and the GCC officials, including former chief engineers M Pugalendi and L Nandakumar, violated all rules of business in allocating tenders and selecting contractors in 2018, which caused a loss of ₹26.61 crore. The agency began its preliminary enquiry into various tenders, including the missing link of storm water drains and the restoration of roads and footpaths. 

It was found that tender transparency rules were violated under the influence and directions of Velumani, DVAC said. M Govinda Rao IAS, then deputy commissioner (works) of GCC, was part of the tender scrutiny committee which approved the tenders, but he has not been named as an accused. 

DVAC: Under-quoted tender items were not properly executed DVAC singled out R Chandrasekar, a youth wing secretary of AIADMK and founder of KCP Engineering, for sitting in Velumani’s official residence and deciding which companies were to  be awarded the tenders. “This act vitiated and coloured the entire process of transparency in the award of tender. 

Freedom given by Velumani to Chandrasekar in dealing with GCC officials induced public servants to cause injudicious award of tenders,” an official from the agency said. The agency said M-sand was used by contractors for these projects, but payment was made on the basis of river sand rates, which were significantly higher. DVAC also found that the rates for ready-mix concrete decided by GCC were abnormally higher than prevailing market rates. In just 53 tenders analysed by DVAC, the alleged corruption in this aspect was ₹26.61 crore. “Contractors and GCC officials colluded with each other to cause loss to govt,” the agency said. It also alleged bid collusion by related parties who won tenders despite submitting bids from the same IP address. Of 73 SWD tender packages, 42 tenderers colluded with each other and helped each other win. The tender scrutiny committee, in which the GCC officials named in the FIR and Govinda Rao were members, recommended the award of 71 SWD tender packages and 14 road tender packages on the same day at one stroke without proper evaluation, DVAC said.

 Bidders had quoted abnormally high rates for certain items and low rates for others. Even after negotiations with the lowest bidder, the rate quoted by them was higher than the schedule of rate (SOR) and actual market rate. DVAC says the committee should have analysed the tender in detail, sought relevant information in writing and rejected unbalanced tenders. Avoiding this caused loss to the exchequer and violated the tender transparency Act as well. The agency also said under-quoted tender items were not properly executed, which was a violation of GCC’s internal circulars