Bidding for Kerala's Rs 232-crore AI camera project was fixed, says Chennithala releasing documents

HIGHLIGHTS
  • Congress leader releases tender documents, says SRIT was Keltron's 'favourite company'
  • Of the three companies shortlisted, one did not meet the experience criterion, and the second was SRIT's partner in the K-FON project
  • Chennithala pegs the corruption at Rs 132 crore basing his estimate on purchase order for cameras, equipment, demands judicial inquiry
Ramesh Chennithala (left) also alleged that the whole deal for Rs 232 crore was more than three times the sum first projected by the companies. Photo: Manorama

Kasaragod: Congress leader Ramesh Chennithala on Tuesday released documents to buttress his allegation that a cartel was formed to hand over the Rs 232-crore AI traffic camera project to SRIT India Private Limited, a company linked to construction company Uralungal Labour Contract Co-operative Society Ltd (ULCCS). "The tender process was fixed... Their favourite company was SRIT," he said.

The former Leader of the Opposition conservatively pegged the size of the alleged scam at Rs 132 crore. "Keltron admitted that the cameras and other equipment are being bought for Rs 75 crore. The miscellaneous expenditure could take the cost to Rs 85 crore. Let's assume it will be Rs 100 crore. But SRIT is implementing the project for Rs 232 crore. There is a corruption of at least Rs 132 crore," he told reporters in Kasaragod.

The state government's Motor Vehicles Department (MVD) tapped the Kerala State Electronics Development Corporation or Keltron to install 726 AI cameras.

In 2020, Keltron as the Project Management Consultancy (PMC), invited bids for the project. "Four companies bid for the project. None of the four companies had experience in installing traffic cameras with artificial intelligence (AI)," said Chennithala.

Keltron rejected the application of Gujarat Infotech Limited saying it lacked organisational capacity and project experience. It did not have an annual turnover was not more than Rs 50 crore for three years and for not executing an ICT (information and communication technology) project worth at least Rs 25 crore in five years ended 2018-2019, according to the documents.

After the technical evaluation, Keltron found SRIT India Private Limited, Ashoka Buildcon Limited, and Akshara Enterprises Private Limited "qualified" to bid.

The technical evaluation summary report was signed by Keltron's head of corporate marketing and IT business group (ITBG) Usha K, senior IT engineer Gopakumar S P, ITBG manager Ashwathi Mohan, deputy managers Vijeesh V, Binsun N T, and assistant managers Jaimon A, Akhilesh P, and Rajkumar S L.

But one of the conditions for lead bidders was it should be in operation for at least 10 continuous years. Hyderabad-based Akshara Enterprises was incorporated on February 7, 2017. "As of today, it is only six years and two months old," Chennithala said. At the time of bidding, it was only three years old.

How did Keltron fund Akshara qualified to bid for the project, asked Chennithala.

He said the winning bidder SRIT was "their favourite" company. "SRIT has no technical qualification (to bid for the project). So they roped in Trois Infotech and Presidio Technologies," he said.

Trois, based in Technopark in Thiruvananthapuram, has expertise in AI cameras. Its managing director T Jithesh has worked as the MD of the joint venture formed between SRIT and ULCC.

Chennithala said the media should investigate the Kozhikode-based Presidio Technologies Pvt Ltd. "Presidio has high-level political connections. The media should investigate those connections.

Based on those connections, it has won K-FON tenders, too," the Congress leader alleged.

Initially, Keltron chairman and managing director N Narayana Murthy denied knowledge of SRIT sub-contracting the project to other companies, he said. "Now after the documents were released, Keltron admits to knowing of the companies down the line," he said.

Keltron later said the government was not paying for the project, he said. "It is true. The government is not paying for the project. It intends to squeeze the poor public," he said

If a couple travels on their scooter with their two children and the AI cameras pick them up at four spots, the family would have to pay Rs 2,000. "The money will not come to the government. It will be used to bloat the bellies of these paper companies," Chennithala said.

The sub-contracting of the project has inflated the cost of the project. There is naked corruption, he said. "The chief minister is dismissing the charges of corruption made based on documents as a smokescreen to thwart the AI traffic camera project. But the opposition will not back off," he said.

The industries minister P Rajeeve initiated a strange step by asking his principal secretary to inquire into the allegation but at the same time gave a clean chit to Keltron, he said. Against the backdrop of such a clean chit and the chief minister's smokescreen comment, what sanctity will the inquiry have? "That's why we are demanding a judicial inquiry into the corruption," Chennithala said.

Soon after Chennithala's press conference in Kasaragod, transport minister Antony Raju sought an explanation from the transport commissioner on the allegations against Keltron.

SRIT response

Meanwhile, SRIT, the lead bidder of the AI camera project said in a statement on its website that it was earning only 6% of the total revenue from the project.

It said it picked partners for procurement of ICT components, electronic and non-electronic components to ensure the highest quality. "The Safe-Kerala project has a strict budget, with SRIT earning only a small percentage (6%) of the total revenue.

Since the project's inception in October 2020, no money has been received by SRIT so far. "SRIT's service fee payment will only begin in February 2026, and will be paid in quarterly installments thereafter," it said.

Calls made to the company's phone went unanswered.

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