NGO Alleges Rs 992 Crore Scam in Tamil Nadu, Files Complaint with Central Agencies

Chennai-based anti-corruption group Arappor Iyakkam on Tuesday filed a complaint with the CBI, ED, DVAC, and Income Tax authorities, alleging a Rs 992 crore scam in Tamil Nadu’s food and civil supplies sector tied to inflated transportation tenders. The 40-page dossier, backed by 565 pages of evidence, was also sent to CM M.K. Stalin and key officials.

At a Chennai Press Club briefing, convener Jayaram Venkatesan accused three firms—Muruga Enterprises, Kandasamy & Co., and Karthikeya Enterprises, linked to Christy Friedgram Group’s T.S. Kumarasamy—of securing tenders at rates 107% above market value, costing the state dearly. The June 2023 contract, awarded at Rs 598 per metric ton versus Rs 200–250 pre-2020 rates, allegedly funneled profits to the group, with approval suspiciously swift after the BJP-led NDA’s 2024 return to power.

Venkatesan tied the scam to ration shortages, noting essentials vanish within seven days monthly, leaving cardholders underserved due to mismanagement. He pointed to a 2020 deal with Zinc Foods, a Christy subsidiary, at Rs 640 per ton—cancelled after three years—claiming it set a precedent for profiteering. The 2023–2025 tender’s revival of the group’s role reignited scrutiny.

Arappor demanded the tender’s cancellation, arguing Rs 1,000 crore could bolster rations and education. The NGO accused the DMK state and BJP Central governments of colluding behind their public rivalry, citing Christy Friedgram’s past Rs 2,028 crore procurement scam exposé in 2021, still under probe. Venkatesan urged media and civil society to press for accountability, warning of entrenched corruption siphoning public funds.