Congress Leader Ramesh Chennithala Levels Rs 700 Crore Corruption Allegation Against Kerala LDF Government
Senior Congress leader Ramesh Chennithala has made a serious corruption allegation against the ruling Left Democratic Front (LDF) government in Kerala, claiming a potential loss of Rs 700 crore to the state exchequer in a software development project for cooperative societies. The allegations center on the cancellation of a tender awarded to Tata Consultancy Services (TCS) and its replacement with a process that allegedly favors two Kannur-based cooperatives.
Details of the Alleged Scandal
Chennithala told reporters on Friday that the cooperative department shortlisted only two cooperatives from Kannur for a project worth Rs 900 crore to develop and implement common software for 4,415 cooperative societies. This followed the cancellation of an agreement with TCS, which had offered to provide the service at just Rs 206 crore. The two cooperatives are the Kerala Dinesh Beedi Workers Central Cooperative Society and the Malabar Information Technology Cooperative Society.
"Of these, Kerala Dinesh Beedi Workers Central Cooperative Society bid for preparing software for 280 primary cooperative societies at Rs 58 crore. The government is preparing to award the contract to the society. At this rate, it will cost Rs 900 crore to develop software for 4,415 cooperative societies, resulting in a Rs 700 crore loss to the state exchequer," Chennithala stated.
Suspicious Tender Process and Political Favoritism
The Congress leader alleged that the cancellation of the TCS tender and subsequent revision of tender rules raise serious questions. He pointed out that new provisions required bidders to have 200 employees in the state, a condition that effectively excluded companies like TCS. "The government should have merely retendered the project. But they changed the provisions of the tender. Why should they change the provisions? It seems to have been done to favor the CPM-led cooperative societies from Kannur," Chennithala asserted.
He detailed the timeline: a committee led by the chief secretary was formed to study developing Kerala's own software instead of using central government software. Tenders were invited, and TCS's sole bid was selected on September 1, 2023, following central guidelines. With prior government approval, an order was issued to TCS on April 24, 2024, for providing software and maintenance for Rs 206 crore. However, this was cancelled.
Hurried Process and Election Timing
Chennithala highlighted that in April 2025, the cooperative department issued a new e-tender inviting a consortium. "The process was hurriedly conducted within two months in January 2026, closer to the election. Strange conditions were imposed in such a way that companies like TCS could not participate," he added. The Malabar Information Technology Society submitted a bid of Rs 273 crore, and a technical evaluation on February 6, 2026, declared both bidders technically qualified.
Political Implications and Election Commission Intervention
The contract could not be awarded due to the declaration of elections, but Chennithala said the government is now planning to seek approval from the Election Commission (EC) to proceed. "The Congress party would write to the EC not to approve the move," he announced, urging the EC to intervene to prevent what he called an illegal move by the cooperative department aimed at bringing all cooperative societies under CPM control.
Chennithala warned, "If the UDF government comes to power, these actions will be annulled." The allegations add a significant corruption dimension to the political landscape in Kerala, with the Congress positioning itself against the LDF's handling of public funds in the cooperative sector.
