Incurring an average annual loss of Rs 100 crore the Amma Canteens, that tantamounts to 500 Rs revenue loss as on date which serve idly for Re 1 and variety rice for Rs 5, became a huge burden on the civic body of Tamilnadu Government..
It is alleged even for entry level appointment of field workers in Amma canteen there is huge amount of kickbacks by ruling ADMK benches .
Once Job in hand inside Amma canteen centre for the amount invested for getting the job to be get compensated by sale of goods (inputs agriculture produce ) with the tacit approval of Ruling body ADMK benches is happening
The data as per Government records itself amply confirm this scam nature ..
As per records, the Corporation has incurred a loss of around Rs 500 crore since the scheme was launched in 2013-2014 financial year. when the then CM Jayalalitha after her death who was convicted by Supreme Court for her Dis appropriation swindle of tax payer wealth to the tune of 64 Crores.,
However, what is surprisingly is the drastic fall in income despite the near-doubling of the number of canteens to 407 from 207.
In 2014-2015, 207 canteens made an income of Rs 40.52 crore, whereas the civic body only managed to earn Rs 24.87 crore in 2018-2019 from 407 canteens.
The biggest loss of Rs 127.06 crore was recorded in 2016-2017, show records.
According to a government order issued by the Municipal Administration and Water Supply Department, Amma canteens that been manage by Amma Unavagam Foundation, which would be hence forth headed by the Additional Chief Secretary of the Department while a District Revenue Officer would be the executive officer.
Earlier The not-for-profit foundation, created as a special purpose vehicle under the Companies Act, 2013. would accept contributions from private organisations under Corporate Social Responsibility fund. The fund requirement would be met by the State government.
“Even though Amma Canteens will be maintained by the Amma Unavagam Foundation, the field-level coordination so far and also will taken care of by the Greater Chennai Corporation officials and workers,” said an official.
But how this scheme been audited and who is to be fixed responsibility that needs a special inquiry commission due to the reason that this is been done under the umbrella of not-for-profit foundation, created as a special purpose vehicle under the Companies Act, 2013..