Just as the news of a cash-for-jobs scam surfaced and gained spotlight, yet another multi-crore scam in the paddy transport contracts of the Tamil Nadu Civil Supplies Corporation (TNCSC) has erupted, exposing large-scale manipulation and systemic lapses in the centralized tender process. The alleged irregularities have not only caused losses amounting to around ₹160 crore in public funds but also delayed the movement of procured paddy, leaving thousands of tonnes vulnerable to rain damage.
According to reports, TNCSC, which deploys nearly 3,200 trucks to move paddy from Direct Purchase Centres (DPCs) to government godowns, had this year awarded the transport contract to three major firms through a central tender. The contract explicitly barred subletting to smaller operators — a condition that appears to have been widely violated.
Subletting and Payment Manipulation
Investigations reveal that the three principal firms partnered with 19 smaller operators to execute the contracts, effectively bypassing the tender conditions. The result has been severe delays in the transport process, with consignments taking up to 40 days instead of the mandated 48 hours to reach storage points.
In one instance in Cuddalore, a truck owner was reportedly paid just ₹6,080 for transporting 32.7 tonnes of paddy over 8 km — at a rate of ₹186 per tonne. The government-approved rate, however, stands at ₹598 per tonne. The contractor, identified as Karthikeya Enterprises, allegedly received ₹19,555 for the same trip, pocketing ₹13,474 in the process.
Truck owners across the state claim this pattern is consistent. They allege that intermediaries have been siphoning off nearly ₹400 per tonne of paddy moved. With 40 lakh tonnes of paddy transported this year, the diverted amount is estimated at around ₹160 crore.
Losses and Public Impact
The manipulation has had far-reaching consequences. Delays have left significant quantities of paddy exposed to rain damage during the ongoing Kuruvai procurement season. Farmers and truck owners alike have raised concerns over mounting losses and logistical chaos in grain handling.
Official and Public Response
Following reports of large-scale irregularities, TNCSC’s managing director has confirmed that the state food minister, R. Sakkarapani, has ordered a detailed inquiry. A subcommittee has been directed to submit its findings within 48 hours.
Anti-corruption NGO Arappor Iyakkam, which flagged the issue earlier this season, staged protests in Chennai demanding transparency and accountability in the tender process. However, activists said there has been no official response from the government so far.
How the ₹160-Crore Scam Unfolded
According to the official tender, the approved transport rate for moving paddy was ₹598 per tonne. However, truck owners were reportedly paid only ₹186 per tonne, resulting in a direct loss of ₹412 per tonne. A total of 40 lakh tonnes of paddy were moved, but instead of payments going directly to the transporters, they were routed through middlemen, allowing roughly ₹160 crore to be siphoned off.
The transport process, which was supposed to be completed within 48 hours, experienced delays extending up to 30 to 40 days. This led to large consignments being left out in the open, exposed to rain and at risk of damage.
While tender conditions clearly stated that subletting was prohibited, the three contracted firms reportedly entered into arrangements with 19 smaller companies to handle the work, in direct violation of the agreement.
A day does not pass without a new Scam in TN under this Corrupt DMK Govt.
While we wait for the TN Govt to file a FIR on the ₹888 Crore Cash for Job scam under Minister Thiru KN Nehru’s department, here is a ₹160 Crore scam under Minister Thiru Sakarapani’s department.… pic.twitter.com/cdGQgKlPx5
— K.Annamalai (@annamalai_k) October 31, 2025
(Source: Times of India)
Subscribe to our channels on WhatsApp, Telegram, Instagram and YouTube to get the best stories of the day delivered to you personally.
