Supplyco has suspended seven more employees for misusing gift cards issued as part of its Onam scheme to facilitate the supply of sugar to a private company.

Non-subsidised sugar was supplied from the Supplyco depot in Perumbavoor to Keerthi Nirmal, a private company. Following the discovery of the irregularity, Maveli Custodian at the Perumbavoor depot, Rajeesh Ravindran, was earlier suspended.

The latest action follows instructions from Food and Civil Supplies Minister Anoop Jacob, who ordered strict action against those involved in the alleged irregularities.

The employees suspended are Supplyco head office Deputy Manager Sajeev Paul; Arakkappady Maveli Store outlet-in-charge Anju Vijayan; Thuravoor Maveli Store outlet-in-charge Sandhya A S; Divya M R of the Palissery Maveli Store; Soumini S of the Ponjassery outlet; Manju Antony of the Karukutti Maveli Store; and Basil Cheriya A of the Sreemoolanagaram Maveli Store.

The minister said such irregularities would not be tolerated and that strict action would be taken against those responsible, irrespective of their position.

Under Supplyco's Onam gift card scheme, Keerthi Nirmal had been issued 1,000 coupons worth ₹1,000 each. To supply non-subsidised sugar against the entire value of these coupons, Maveli Custodian Rajeesh Ravindran issued sugar from the Perumbavoor depot to the Supplyco outlets at Thuravoor, Palissery, Karukutti, Sreemoolanagaram, Ponjassery and Arakkappady. Bills for the sugar were subsequently generated at these outlets.

However, records showed that the sugar required for billing had been transferred to the respective outlets, while a Supplyco vigilance inspection found that the actual stock remained at the depot.

The outlet employees were suspended over the alleged large-scale sale of sugar to a private company at a time when there was a significant difference between Supplyco's price and the prevailing market price of sugar, as well as for allegedly handling the stock in violation of procedures.

According to the Managing Director's order, Deputy Manager Sajeev Paul was suspended pending an inquiry for encouraging subordinate employees to facilitate the large-scale transfer of stock despite the significant price difference in the market. The order also said he had conveyed the false impression that the irregularities were being carried out with the knowledge of senior officials at Supplyco's head office.