Tamil Nadu: DVAC unearths Rs 1.7 crore scam in procurement of RO plants for Aavin

CHENNAI: Directorate of Vigilance and Anti-corruption (DVAC) has dug out a massive Rs 1.7 crore scam in the procurement of substandard reverse osmosis (RO) plants used for milk chilling centres in Aavin’s Vellore and Tiruvannamalai wing.
An FIR was filed last week by the Vellore detachment of DVAC in which the then general manager M Prabakaran and assistant general manager KS Muraliprasad, of the Vellore and Tiruvannamalai district cooperative milk producers union ltd (VTDCMPU) have been named as first and second accused.
The agency has found that the general manager and assistant general manager of Vellore and Tiruvannamalai District Co-operative Milk Producers Union created fictitious companies with the help of local traders known to them, fixed the tender process for procurement of the RO plants and threatened tender committee members to award the tender to these fictitious companies. During an internal audit the RO plants were found to be of sub-standard quality as well Four other private individuals who allegedly aided the officials in the procurement have also been named in the FIR.
In 2017 and 18, VTDCMPU decided to purchase 40 RO water plants for milk chilling after getting permission from the headquarters in Chennai.
DVAC said the two accused officials threatened subordinates and obtained quotations from firms close to themselves. They then created paperwork as if quotations were given by companies, which were fake.
Purchase orders were issued to companies close to the two officials, DVAC said and a trail was created as if they had given the lowest quotations. However, these prices itself were higher than the market rate; later payment amounting to Rs 1.69 crore was also made to these companies.
An internal audit found that the funds were not utilised properly; DVAC said the unbranded RO plants procured were not in working condition and found to be defective. A case under sections for corruption, cheating and forgery has been booked against the accused.