State asks firm to return Rs 54 crore

The State government has asked ‘Comet Technologies,’ a private company given the task to computerise and issue ration cards to eligible families, to return Rs 54 crore for violating agreed terms in implementing the project.

The State had paid Rs 54 crore to Comet.

Despite that the company had claimed an additional Rs 18 crore for its services.
Food and Civil Supplies Minister D N Jeevaraj, however, had ruled out paying additional amount to the company.

The issue is before retired judge justice T Jayaramu Chouta.

As per the agreement entered into in 2006, the company had to digitise data collected through house-to- house survey and issue computerised ration cards to eligible families.
The company, however, issued ration cards to families without any verification resulting in a loss of Rs 400 crore to the State exchequer, the government had argued before the arbitrator.