Rs 300 cr corruption in TN Civil Supplies Tender: Arappor Iyakkam

Arappor Iyakkam coordinator Jayaram Venkatesh has alleged a massive ₹300 crore corruption in the tender issued by the Tamil Nadu Civil Supplies Corporation (TNCSC) for transporting paddy from direct procurement centers. Speaking to the media, he stated that TNCSC floated a tender in June 2023 for transporting paddy and other grains across 38 districts of Tamil Nadu from July 2023 to June 2025. The contract involved moving paddy from procurement centers to storage warehouses and de-husking units. According to Jayaram Venkatesh, the tender price for transporting one ton of paddy for the first 8 km was set at ₹288. However, in June 2024, the contract was awarded at an inflated rate of ₹598 per ton to Muruga Enterprises, Kandasamy & Co, and Karthikeya Enterprises—allegedly linked to Christy’s proxy firms. This resulted in a 107% overpricing, causing a loss of ₹310 per ton. With an estimated procurement of 40 lakh tons of paddy per year, the loss for a single journey is calculated at ₹124 crore annually. Considering at least four transport cycles—procurement center to warehouse, warehouse to de-husking unit, railway transport, and final storage—the total estimated loss for a year is ₹496 crore. Over the two-year contract period, this loss could amount to ₹992 crore. Arappor Iyakkam claims that ₹300 crore has already been lost due to corruption in the past year. They urge the government to cancel the tender immediately to prevent a further loss of ₹600 crore. Complaints have been filed with the CBI, state anti-corruption wing, Enforcement Directorate, Income Tax Department, the Chief Minister, and central and state food ministers, demanding a thorough investigation and strict action against those involved.