Rs 700cr graft in developing software for co-ops: Ramesh Chennithala

Thiruvananthapuram: Senior Congress leader Ramesh Chennithala has raised Rs 700 crore corruption allegation against the LDF govt. The cooperative department shortlisted two Kannur-based cooperatives for a project worth Rs 900 crore to develop and implement a common software for 4,415 cooperative societies after cancelling an agreement with Tata Consultancy Services (TCS), which offered to provide the service at Rs 206 crore, Chennithala told reporters on Friday.

He alleged that only two cooperatives from Kannur Kerala Dinesh Beedi Workers Central Cooperative Society and Malabar Information Technology Cooperative Society could bid for the project under the new provisions.

"Of these, Kerala Dinesh Beedi Workers Central Cooperative Society bid for preparing software for 280 primary cooperative societies at Rs 58 crore. The govt 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 Rs 700 cr loss to state exchequer," he said.

However, the contract could not be awarded due to the declaration of elections. Now, the govt is planning to go ahead with approval from the Election Commission (EC), Chennithala said, adding that the Congress party would write to the EC not to approve the move.

The cancellation of the tender given to TCS and the revision of tender rules that the company that should bid should have 200 employees in the state make the intentions suspicious. "The govt 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 favour the CPM-led cooperative societies from Kannur," Chennithala said.

He said that the need for software came after the Kerala govt decided to develop its own software instead of using the common software developed by the central govt.

"A committee led by the chief secretary was formed to study this matter, and tenders were invited accordingly. The sole tender from TCS was selected on Sept 1, 2023, following central guidelines. With prior govt approval, on April 24, 2024, an order was issued to TCS for providing software and maintenance to 4,415 primary societies, including their branches, for a financial bid of Rs 206 crore," he said.

However, it was cancelled. "In April 2025, the cooperative department issued a new e-tender inviting a consortium. The process was hurriedly conducted within two months in Jan 2026, closer to the election. Strange conditions were imposed in such a way that companies like TCS could not participate," Chennithala added.

The Malabar Information Technology Society submitted a bid of Rs 273 crore. The technical evaluation of the new tender's specifications was conducted on Feb 6, 2026, by a committee which declared that the software from both bidders technically qualified, he said.

He said that the EC should intervene to prevent this illegal move by the cooperative department and bring all cooperative societies under the control of the CPM. "If the UDF govt comes to power, these actions will be annulled," Chennithala added.