Chennai-based anti-corruption NGO Arappor Iyakkam has alleged a massive scam of Rs 992 crore in the transportation of paddy across the state. The NGO alleged that both the Bharatiya Janata Party (BJP)-led Union government and the ruling Dravida Munnetra Kazhagam (DMK) government in Tamil Nadu have colluded in the crime.
Addressing the media on Tuesday, March 11, Arappor Iyakkam’s convenor Jayaram Venkatesan claimed that the entire tender process was rigged in favour of three firms—Karthikeya Enterprises, Kandasamy & Co, and Muruga Enterprises. These firms allegedly belong to Kumarasamy, owner of Christy Friedgram Group.
Officials from both Tamil Nadu Civil Supplies Corporation (TNCSC) and the Union government’s Food Corporation of India (FCI) are alleged to be involved in the corruption.
Highlighting the role of the BJP in the scam, Jayaram said that the tenders for these firms were awarded within a month of the BJP assuming power in June 2024. He alleged that Christy Friedgram donated Rs 12.58 crore to the BJP over the past five years, with Rs 6 crore contributed in 2024 alone.
Elaborating on the scam, Jayaram pointed out that the tendering rules were deliberately designed to exclude experienced bidders and favour new entities. “They excluded all competition by disqualifying existing bidders and instead allowed inexperienced firms to qualify by paying just 5% of the tender value as a guarantee,” he stated.
The revised criteria, approved by the state government, also exempted inexperienced bidders from submitting annual Income Tax (IT) returns or meeting any turnover requirements.
Following seven rounds of negotiations, Union and state officials sanctioned the tender at rates 107% higher than the scheduled cost. “The approved rate for transporting one metric tonne (MT) of paddy for the first eight kilometers was set at Rs 598/MT, whereas the scheduled rate was only Rs 288/MT—an overpricing of Rs 310/MT,” Jayaram said.
Further raising concerns over the credibility of the selected firms, he added, “We visited their offices, and all three were operating out of 10×10 ft rooms with only a single computer and printer, clearly set up just for billing purposes. How could such firms qualify for tenders worth thousands of crores?”
Urging the immediate registration of an First Information Report (FIR), the NGO filed a complaint with Central Bureau of Investigation (CBI), Enforcement Directorate (ED), Income Tax (IT), Vigilance and Anti Corruption (DVAC), Chief Minister MK Stalin and the Food Department secretaries of both State and Union government.
This is not the first time the NGO has raised concerns about Christy Friedgram Group. In 2021, it had filed a complaint against the company for subcontracting the transportation of sugar, dal, and palm oil. Following the complaint, the Tamil Nadu government terminated the company’s contract. The investigation in this case is still underway.