In what appears to be a long-running case of systemic corruption, officials and contractors associated with the Tamil Nadu Water Supply and Drainage (TWAD) Board are allegedly embezzling close to ₹90 crore each year by underpaying contract workers through a well-organized scheme. This malpractice reportedly affects thousands of labourers employed in the Combined Water Supply Schemes (CWSSs) throughout the state.
A formal complaint was submitted last month by the Tirunelveli-Tenkasi Bharathiya TWAD Board Contract Labourers Union to TWAD Managing Director Kiran Gurrala. It stated that although the mandated monthly minimum wage for around 12,000 workers is ₹15,401, labourers are being paid only ₹7,500 to ₹9,800 a reduction of 40–50%. The remaining portion of the salary roughly ₹7.42 crore per month is allegedly being misappropriated by corrupt board officials and contractors.
The contract workers claim they’ve been campaigning for fair wages for over two decades. Despite various departments including the labour department, Employees’ Provident Fund (EPF) office, and even the Chief Minister’s office acknowledging irregularities and recommending reforms, the workers allege that influential parties within the system have persistently blocked any corrective measures.
According to former TWAD MD V. Dakshinamoorthy, who shared relevant details with the union in 2022, approximately 11,597 workers serve in the CWSS network across Tamil Nadu, mostly in roles such as electricians, pump operators, and maintenance personnel. All are legally entitled to the government-prescribed minimum wage.
In their petition, the union claimed that the wages are not being directly deposited into workers’ accounts, as required. Instead, they receive reduced amounts in cash, without official documentation. Meanwhile, salary records falsely show full payments an arrangement allegedly orchestrated with the help of Executive Engineers in various districts. The union estimates that over each three-year contract cycle, around ₹267 crore is being siphoned off.
Supporting the workers’ claims, a 2018 showed that a committee was to be formed to investigate wage discrepancies, as ordered by then MD C.N. Maheswaran. However, workers say no inquiry was ever conducted.
Moreover, despite tender documents clearly stipulating that payments must be made via cheque or direct bank transfers, this guideline has largely been ignored. In a 2018 review meeting, then Chief Minister Edappadi K. Palaniswami raised concerns about wage distribution irregularities. Following that, several senior TWAD officials, including Chief Engineer P. Manimohan and Superintending Engineer S. Rajasekar, issued urgent directives between 2021 and 2024, instructing compliance with wage regulations. Another such directive came in August 2024 from MD Dakshinamoorthy, urging adherence to the legally mandated pay structure.
Despite these directives, a contract agreement valid until March 2026 signed between contractor S. Balasubramania Pandian and the TWAD Board’s Chief Engineer (Madurai) committed to following the Madras High Court’s 2022 wage order. Yet, workers allege that this commitment has also not been honored.
Furthermore, according to reports, enforcement officers from the Central EPFO and inspectors from the State Labour Department were denied access to essential documents like salary registers by TWAD’s Executive Engineers and CWSS contractors in Tirunelveli and Tenkasi.
Current MD Kiran Gurrala was unavailable for comment, while Minister for Water Supply K.N. Nehru stated on 25 May that he would inquire with the involved parties.
(With inputs from TNIE)
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