'IT project to Dinesh Beedi': Congress’s Chennithala alleges ₹700 Cr scam move in Kerala Co-op Dept

Thiruvananthapuram: Senior Congress leader Ramesh Chennithala has alleged that the Kerala Cooperation Department is laying the groundwork for one of the largest scams the state has ever seen. He claimed that a project to implement common software for Primary Agricultural Credit Societies (PACS)—originally intended for global IT giant Tata Consultancy Services (TCS)—is being handed over to the Dinesh Beedi Workers' Central Co-operative Society at more than four times the original cost, despite the society having no prior experience in the IT sector.

According to Chennithala, a deal had previously been reached to award the contract to TCS for ₹206 crore, covering all 4,415 primary cooperative societies. However, he alleged that this tender was mysteriously cancelled and re-floated with revised conditions. Under these new terms, only two CPM-controlled cooperative societies from Kannur participated in the bidding: the Kerala Dinesh Beedi Workers' Central Co-operative Society and the Malabar Information Technology Co-operative Society.

The government is reportedly preparing to award a bid of ₹58 crore submitted by the Dinesh Beedi society to provide software for just 280 primary societies. Chennithala pointed out that at this rate, implementing the software across all 4,415 societies would cost approximately ₹914 crore.

He highlighted that a project which a global leader like TCS was willing to execute for ₹206 crore is now being handed over to an inexperienced entity for a sum that would eventually result in a loss of over ₹700 crore to the exchequer.

Chennithala further alleged that all formalities for the deal have been completed. He alleged that there is currently a move to award the tender by seeking special permission from the Election Commission, as the Model Code of Conduct is presently in effect.