Ramesh Chennithala alleges scam in software contract for primary agriculture credit societies in Kerala

Senior Congress leader Ramesh Chennithala on Friday alleged that ground is being prepared in the Kerala’s Cooperation department for a major scam in connection with the development of a ‘uniform software solution’ for 4,415 primary agriculture cooperative credit society (PACS) branches in the State.

Addressing a press conference here, Mr. Chennithala said that the original decision to award the contract to Tata Consultancy Services (TCS) for ₹206 crore was cancelled and a fresh tender was invited under mysterious circumstances. The CPI(M)-led LDF government is attempting to award the work to Kannur-based Kerala Dinesh Beedi Workers’ Central Cooperative Society Ltd which has quoted ₹58 crore for providing the software solution to 280 cooperatives, he said.

At that rate, equipping all 4,415 cooperative society branches would cost around ₹914 crore, resulting in a loss of ₹700 crore to the State when compared to the amount quoted by TCS, Mr. Chennithala alleged.

The Cooperation department had issued orders accepting the TCS’s single tender for the work in September 2023. The financial bid was approved through a government order dated April 2024. Mr. Chennithala’s allegation is that the LDF government decided to cancel this tender and in inviting fresh bids, had reframed the conditions in such a manner that reputed firms such as TCS would not be eligible to apply.

Only two entities had bid – the Malabar Information Technology Cooperative Society Ltd and the Kerala Dinesh Beedi Workers’ Central Cooperative Society Ltd. The former had quoted ₹273 crore and the latter, ₹58 crore, for carrying out the work in 280 PACS branches, according to Mr. Chennithala.

He said it was significant that both bidders were from Kannur and controlled by the CPI(M). “Since the Model Code of Conduct for the Assembly election is in force, the government is trying to obtain the Election Commission of India’s (EC) approval for awarding the work. I plan to file a complaint with the EC,” Mr. Chennithala said.

He also added that the Congress-led UDF, if it comes to power, would scrap the tender and order an investigation into the incident.