Karnataka: Congress govt accused of awarding contract to scam-tainted firm for guarantee scheme cloud services
September 1, 2026
  • Read Ecopy
  • Circulation
  • Advertise
  • Careers
  • About Us
  • Contact Us
Android AppiPhone AppArattai
Organiser
  • ‌
  • Bharat
    • Assam
    • Bihar
    • Chhattisgarh
    • Jharkhand
    • Maharashtra
    • View All States
  • World
    • Asia
    • Europe
    • North America
    • South America
    • Africa
    • Australia
  • Editorial
  • International
  • Opinion
  • RSS @ 100
  • More
    • Op Sindoor
    • Analysis
    • Sports
    • Defence
    • Politics
    • Business
    • Economy
    • Culture
    • Special Report
    • Sci & Tech
    • Entertainment
    • G20
    • Azadi Ka Amrit Mahotsav
    • Vocal4Local
    • Web Stories
    • Education
    • Employment
    • Books
    • Interviews
    • Travel
    • Law
    • Health
    • Obituary
  • Subscribe
    • Subscribe Print Edition
    • Subscribe Ecopy
    • Read Ecopy
  • ‌
  • Bharat
    • Assam
    • Bihar
    • Chhattisgarh
    • Jharkhand
    • Maharashtra
    • View All States
  • World
    • Asia
    • Europe
    • North America
    • South America
    • Africa
    • Australia
  • Editorial
  • International
  • Opinion
  • RSS @ 100
  • More
    • Op Sindoor
    • Analysis
    • Sports
    • Defence
    • Politics
    • Business
    • Economy
    • Culture
    • Special Report
    • Sci & Tech
    • Entertainment
    • G20
    • Azadi Ka Amrit Mahotsav
    • Vocal4Local
    • Web Stories
    • Education
    • Employment
    • Books
    • Interviews
    • Travel
    • Law
    • Health
    • Obituary
  • Subscribe
    • Subscribe Print Edition
    • Subscribe Ecopy
    • Read Ecopy
Organiser
  • Home
  • Bharat
  • World
  • Operation Sindoor
  • Editorial
  • Analysis
  • Opinion
  • Culture
  • Defence
  • International Edition
  • RSS @ 100
  • Magazine
  • Read Ecopy
Home Bharat

Karnataka: Congress govt accused of awarding contract to scam-tainted firm for guarantee scheme cloud services

RTI documents revealed that the state Congress government in Karnataka awarded a cloud service contract to a company based in Hyderabad with a tainted history

IndreshIndresh
Jun 3, 2025, 04:15 pm IST
inBharat, Karnataka
Follow on Google News
Facebook
Twitter
WhatsAppTelegramEmail

The Congress government in Karnataka is facing explosive allegations after RTI documents revealed that it awarded cloud service contracts to a company embroiled in the infamous Andhra Pradesh e-challan scam — raising serious concerns over due diligence, misuse of public funds, and willful negligence in managing its flagship guarantee schemes.

According to the documents, the Siddaramaiah-led government granted exemption under Section 4(G) of the Karnataka Transparency in Public Procurement (KTPP) Act to Data Value Solutions — a private cloud services firm whose director Kommireddy Avinash, the son-in-law of former Andhra Pradesh DGP N. Sambasivarao, had been arrested in connection with a massive Rs 36.5 crore e-challan scam in Andhra Pradesh.

Despite the company being under investigation and its director behind bars, no background verification or departmental inquiry was conducted before the contract was approved. Shockingly, Chief Minister Siddaramaiah himself cleared the order, triggering outrage over what the opposition is calling a “reckless and politically motivated contract” given to a blacklisted firm.

Scam-tainted company wins contract for key guarantee schemes

On June 28, 2023, the Finance Department and the e-Governance Department approved the procurement of cloud hosting services from Data Evalu Solutions to support the digital infrastructure required for rolling out Congress’s ambitious guarantee schemes, including Griha Jyoti, Griha Lakshmi, Shakti Yojana, and Yuva Nidhi.

The department cited urgency and high application traffic as the reason for skipping the standard tender process, granting a 4(G) exemption that allowed the government to bypass competitive bidding. A total of Rs 63.13 lakhs was sanctioned to the company in two tranches — Rs 33.13 lakhs for Azure services and Rs 30 lakhs for AWS hosting, as per official note sheets.

This move has now sparked political and public backlash, as RTI documents confirm that the same company had earlier defrauded the Andhra Pradesh Police Department by diverting traffic fine payments meant for the government coffers to a fake application named Razor PE, swindling nearly Rs 36.5 crore between 2018 and 2019.

No due diligence, no discussion on criminal record

Despite the company’s and its director’s serious criminal background, the Karnataka government failed to mention these facts anywhere in the official documentation. The RTI documents reveal that not a single line in the proposal file discusses the company’s involvement in the Andhra Pradesh scam.

Furthermore, there is no record of background checks, no references to pending criminal cases, and no deliberation over the implications of hiring a company whose key official had been arrested for financial fraud just months prior.

“This reeks of corruption and complete abdication of responsibility,” said a former senior official from the Karnataka Administrative Services, who requested anonymity. “When a company’s director has been arrested and his operations linked to a multi-crore scam, the least a government should do is investigate — not reward him with new contracts.”

Opposition cries foul: “Congress hired a criminal contractor”

The BJP and JD(S) have pounced on the revelations, accusing the Congress government of knowingly hiring a scam-tainted firm and exposing sensitive citizen data and crores of taxpayer money to risk.

“This is a clear case of criminal negligence. The government bypassed tender rules under 4(G), handed over Rs 63 lakh to a company whose director has been jailed, and still has the audacity to stay silent,” said BJP MLA R. Ashoka, calling it “a textbook case of conflict of interest and political compromise.”

He demanded a judicial probe into how Data Value Solutions — linked to fake payment gateways, dummy accounts across Telangana, Karnataka, and Andhra Pradesh, and illegal revenue collections — was entrusted with digital infrastructure handling crores of applications and personal data under major state-run welfare schemes.
Behind the scenes: How the deal was pushed

The file trail shows that Data Evalu Solutions first submitted a proposal on June 10, 2023, just weeks after the Congress government came to power. The e-Governance Department cited the rising application load on the Seva Sindhu portal — used by citizens to apply for guarantee schemes — as justification for quickly onboarding cloud providers without a tender.

Initially, the government approved Rs 89.90 lakh for ESDS to provide cloud services over two months. However, technical errors and overload led to a proposal for additional services from Azure and AWS, routed through Data Evalu Solutions — despite other vendors offering lower prices.

A notification from the Finance Department on June 28, 2023, cleared Rs 33.13 lakh and Rs 30 lakh for Azure and AWS, respectively, routed through Data Value, cementing their position as the service provider for one of Karnataka’s most high-profile schemes.

A ticking digital time bomb?

Cybersecurity experts are also raising red flags, warning that outsourcing hosting to a company facing fraud charges — with a history of manipulating payment systems and banking networks — could compromise citizen data, breach confidentiality, and expose the government to massive legal liabilities.

“State welfare data includes names, Aadhaar details, income status, and banking information. Giving backend control of such systems to a questionable firm is a disaster waiting to happen,” said Dr Anirban Sen, a cyber security expert formerly with CERT-In.

Congress remains silent amid the firestorm

So far, Chief Minister Siddaramaiah, IT Minister Priyank Kharge, and e-governance officials have remained tight-lipped about the controversy despite growing calls for a white paper on the matter.

RTI activists and digital rights groups are now demanding that the contract be scrapped immediately, the role of officials scrutinised, and that Data Value Solutions be blacklisted permanently from government procurement.
With the guarantee schemes being the Congress’s electoral trump card, this scandal threatens to dent its credibility and raise fundamental questions about the integrity of digital governance under its rule.

Topics: Congress GovernmentRTI documentsBJP
Share
Tweet
SendShareSend
✮ Subscribe Organiser YouTube Channel. ✮
✮ Join Organiser's WhatsApp channel for Nationalist views beyond the news. ✮
Previous News

Punjab: Gurpreet Singh arrested for sacrilege bid at Golden Temple ahead of 41st anniversary of Operation Bluestar

Next News

“You have right to speech, but not to..”: Karnataka HC to Kamal Haasan over ‘Kannada born from Tamil’ remark

Related News

Minister B. Nagendra and BJP State President Vijayendra

Karnataka: BJP claims victory after Minister B. Nagendra resigns; Says, sustained protest forced Congress govt to act

Karnataka: Rs 15,429cr irrigation project dues raise questions over pace of development works under Congress government

Karnataka Transport Corporation Crisis Deepens: Rs 5,650cr Shakti scheme due unpaid, Rs 20,956cr spent on free journeys

Bharatiya Janata Party National General Secretary (Organisation) BL Santosh stated that BJP will contest all 117 seats alone in Punjab

Punjab Assembly Polls 2027: BJP to contest 117 seats alone: BL Santosh amid speculation over alliance with Akali Dal

Remembering Arun Jaitley on his death anniversary (This image is generated by AI)

Arun Jaitley Death Anniversary: The lawyer-politician who left a lasting mark on India’s economy

Union Minister Pralhad Joshi

Karnataka: Pralhad Joshi slams road construction over temple Pushkarani; Exposes Congress govt’s appeasement politics

Load More

Latest News

Vande Mataram's 150th anniversary is being celebrated across the country

Vande Mataram: Symbol of national identity and integrity

Mission Zero: Depalpur clears 1,250 tonnes of legacy waste, becomes first Swachh Shehar Jodi city

Mission Zero: Madhya Pradesh’s Depalpur clears 1,250 tonnes of legacy waste, becomes first Swachh Shehar Jodi city

RSS Sah Sarkaryawah Dr Krishna Gopal ji addressing the gathering

RSS is an organisation of those who believe in Bharat’s fundamental philosophy: Dr Krishna Gopal

Hindu minor, Sourabh Chandra Roy, was allegedly dragged into a mosque in Bangladesh’s Lalmonirhat

Bangladesh: Hindu minor allegedly dragged into Mosque and brutally beaten in Kaliganj

Manipur: Centre suspends Census amid rising demand for NRC before population exercise

RSS Swayamsevaks helped the Muslim victims of the Charkhi Dadri plane crash

November 12, 1996 Charkhi Dadri Plane Crash: When RSS Swayamsevaks rushed to serve & assist Muslim victims — Read Here

‘Conversion Drive’ sparks Hindu protest in West Bengal: Argentina missionary confronted in Hingalganj

BJP Telangana chargesheets Congress govt, flags Rs 15,000 cr dues, Rs 4 lakh cr borrowing, calls ‘1000 Days, 1000 Lies’

Telangana: Secunderabad Cantonment on high alert after 12 firearms, including four AK-203 rifles, stolen

“Hindus and Sikhs may follow different religions, but we share same values & spirit: Sikh Leader Kashmir Singh Dhaliwal

Load More
  • Privacy
  • Terms
  • Cookie Policy
  • Refund and Cancellation
  • Delivery and Shipping

© Bharat Prakashan (Delhi) Limited.
Tech-enabled by Ananthapuri Technologies

  • Home
  • Search Organiser
  • Bharat
    • Assam
    • Bihar
    • Chhattisgarh
    • Jharkhand
    • Maharashtra
    • View All States
  • World
    • Asia
    • Africa
    • North America
    • South America
    • Europe
    • Australia
  • Editorial
  • Operation Sindoor
  • Opinion
  • Analysis
  • Defence
  • Culture
  • Sports
  • Business
  • RSS @ 100
  • Entertainment
  • More ..
    • Sci & Tech
    • Vocal4Local
    • Special Report
    • Education
    • Employment
    • Books
    • Interviews
    • Travel
    • Health
    • Politics
    • Law
    • Economy
    • Obituary
  • Subscribe Magazine
  • Read Ecopy
  • Advertise
  • Circulation
  • Careers
  • About Us
  • Contact Us
  • Policies & Terms
    • Privacy Policy
    • Cookie Policy
    • Refund and Cancellation
    • Terms of Use

© Bharat Prakashan (Delhi) Limited.
Tech-enabled by Ananthapuri Technologies