TN civil supplies official quizzed as Income Tax dept raids firm supplying nutrition to school children

CHENNAI:

Tamil Nadu Civil Supplies Department managing director M Sudha Devi is being quizzed by Income Tax department after a firm which supplies nutritious food to 563 Aanganwadis in the state was under scanner for tax evasion.

A top income tax official said that managing director of state civil supplies department was quizzed for links as raids were carried out at 53 premises of Christy Friedgrams Industry, which is said to be one of the first companies in India to propagate Integrated Child Development Scheme, for tax evasion and floating large number of shell companies.

“There were no raids at her premises in All India Service quarters located at Nerkundram. It was only investigation,” said the official.

Besides Christy, officials are also conducting raids at 17 premises belonging to Agni Estates as it was found that the real estate firm had common transactions with Christy and had floated shell companies.

Overall 70 premises across the state belonging to Christy and Agni Estates were raided of which 40 were located in Chennai. Raids were also conducted in Tiruchengode in Namakkal district, Coimbatore and Nammakal.

The Tiruchengode based company, which claims to serve 563 Aanganwadis in Tamil Nadu and providing nutritious food, including eggs and pulses, to two lakh children in the state had been in scanner of income tax department since 2016.

The officials said that raids are also being carried out in three places in Karnataka, which includes Nelamangala, Davangere and Gulbarga. Interestingly, the firm had courted controversy in 2012 over its agreement with Karnataka’s Women and Child department which was later cancelled for supplying substandard food to anganwadis under the Integrated Child Development Scheme.

The Central government spends close to Rs 10,000 crore every year on food supply under ICDS. The apex court had prohibited involvement of private contractors in procurement of food for children and women under ICDS. It ordered that ICDS funds be spent on village communities and self-help groups (SHGs) for buying grains and preparing meals.