With less than two weeks remaining for polling in Kerala, the election campaign has taken a sharp turn following fresh corruption allegations raised by the Congress in the state’s Cooperation Department—claims that the party says could involve nearly Rs 700 crore.
Addressing the media in Thiruvananthapuram, senior Congress leader Ramesh Chennithala alleged that the state government was attempting to push through what he termed the “biggest scam” in the cooperative sector, using the ongoing election period as cover.
The controversy centres around a statewide software project aimed at digitising more than 4,400 primary cooperative societies.
According to Chennithala, the project was initially awarded to Tata Consultancy Services (TCS) in 2023–24 for Rs 206 crore following due process. However, he claimed that the contract was later scrapped under “suspicious circumstances.”
A fresh tender was floated in 2025 with revised conditions, which the Congress alleges effectively excluded major, experienced firms from participating.
Only two Kerala-based cooperative entities reportedly took part in the bidding process, both from Kannur. Among them, the Kerala Dinesh Beedi Workers Central Cooperative Society emerged as the lowest bidder.
The financial aspect of the project has become a key point of contention. According to the Congress, the cooperative society quoted Rs 58 crore to implement the software for just 280 societies.
Extrapolated across all 4,415 societies, the total project cost could rise to nearly Rs 900 crore—more than four times the earlier estimate by TCS. The Congress claims this could result in a loss of approximately Rs 700 crore to the public exchequer.
Chennithala also questioned the capability of the selected entity, citing its lack of experience in handling large-scale software deployment.
The Opposition further alleged that the government is seeking special clearance from the Election Commission to finalise the deal during the Model Code of Conduct period, calling the move “hurried and questionable.”
Beyond financial concerns, the Congress framed the issue as politically sensitive, claiming that the project could centralise control over cooperative institutions that have traditionally functioned across party lines.
The ruling CPI(M) has not issued a detailed response to the allegations so far.
Follow us
