Senior Congress leader Ramesh Chennithala accused Kerala’s Cooperative Department of a massive Rs 700-crore fraud, just as the state approaches a crucial election. The alleged irregularities revolve around a project involving a common software platform for over 4,400 primary cooperative societies. Initially awarded to Tata Consultancy Services (TCS) for Rs 206 crore, the project was later canceled and retendered under suspicious circumstances, favoring inexperienced entities at inflated costs.
Chennithala highlighted that a unified core banking software system, mandated since 2016 by RBI and NABARD, was customized by the Kerala government. Despite TCS being the sole qualified bidder in 2023, the contract was abruptly canceled due to alleged political interference. A subsequent e-tender in 2025, with tailored conditions, reportedly excluded established IT firms, leading to only two local cooperative entities bidding.
The Dinesh Beedi Cooperative quoted Rs 58 crore for a fraction of the project, hinting at a potential cost exceeding Rs 900 crore, compared to TCS’s initial quote of Rs 206 crore. Chennithala raised concerns over limited participation and suspected a move to exert political control over the cooperative sector. With the Model Code of Conduct in place, he called on the Election Commission to intervene and halt the tender process, vowing to annul the deal if the UDF comes to power.
