Meanwhile, State government sources said that the latest tender called for this year’s supply of egg and pulses to school for the noon meal scheme by ICDS has been cancelled amidst protest from other bidders than Christy.
Apart from Christy group’s e firms, there were five bidders. Sources noted that two companies were from AP while another was from Namakkal.
Following the raids at Christy, the tender process, said to be worth more than Rs 500 crore, has been cancelled and re-tendering process will start soon, sources added.
Sources also alleged that State officials used to help TS Kumaraswamy of Christy Industry with inside information beforehand on information like tender, rates, minimum bid, possible demand in the next season etc.
The Christy industry had also been fudging bills and taxes using shell companies. It may be noted that the taxmen had questioned TN Civil Supplies Corporation’s Managing Director, M Sudha Devi, in connection with the raids at premises of Christy Industry.
Income-Tax investigators started raiding the premises of Christy Friedgram Industry and Agri Group last Thursday.
During the raids they had seized Rs 17 crore cash, 10 kg gold and property documents besides over one hundred flash drives and hard drives.
Sources also added that huge bribes were paid to political parties in power in the last decades by the firm.