Alleged Rs 700 Crore Scam in Kerala Cooperative Software Procurement

Ramesh Chennithala, a senior Congress leader, alleges a Rs 700 crore scam in Kerala's software procurement for cooperative societies. The initial contract with TCS was abruptly canceled, leading to a controversial tender process favoring local companies. A new contract is expected to be awarded, awaiting Election Commission approval.

On Friday, senior Congress leader Ramesh Chennithala accused the LDF government of a massive Rs 700 crore scam linked to the procurement of software for thousands of primary cooperative societies in Kerala.

Chennithala revealed that a tender initially awarded to Tata Consultancy Services (TCS) for Rs 206 crore was suspiciously canceled. A fresh tender emerged, allegedly designed to exclude TCS and favor two Kannur-based companies, reportedly under CPI(M) control. One company, Dinesh Beedi Cooperative Society, bid Rs 58 crore despite lacking experience, according to Chennithala.

This controversial tender revision inflates the software implementation cost to Rs 915 crore, starkly contrasting with TCS's initial Rs 206 crore estimate, indicated the Congress leader. Chennithala further pointed out that the Kerala government bypassed a nationally developed system to pursue its own, awaiting Election Commission approval to finalize the new contract.