Hyderabad, 16th of September, 2024 : Raahat, the Safe Community Foundation, a prominent non-governmental organisation (NGO) dedicated to public safety, has, raised significant concerns over the procurement practices of the Telangana Transport Department regarding Smart Cards. The foundation’s chairman, Dr. Soi, has lodged a detailed complaint with the Transport Minister, Government of Telangana, highlighting potential national security risks associated with the use of substandard Chinese chips in smart cards supplied by M/s. Colorplast India Pvt. Ltd.
Raahat highlighted that in February 2023, M/s. Colorplast India Pvt. Ltd. was awarded a tender by Telangana State Transport Department to supply Pre- Printed PVC 64K SCOSTA Smart Cards on Rate Contract basis for 1 year. M/s. Colorplast India Pvt. Ltd., is following illegal, fraudulent, and malafide practices by supplying non-compliant SCOSTA smart cards with substandard Chinese Chips.
Details of a few of these cards are given here in below:
Series RC0380000/24 onwards series
Series RC0460000/24 onwards series
Series DL0358000/24 onwards series
Series DL0284000/24 onwards series
Series DL0362000/24 onwards series
Such illegal practice is a serious threat to the safety and security of the data/information of the State Transport Department as well as India which is a serious criminal act by the Company as these module/chips of Chinese origin poses a serious threat to India’s cybersecurity and national security interests due to potential backdoor access, data breaches, or espionage.
Use of such non-approved chips lack the necessary security protocols and standards mandated by SCOSTA (Smart Card Operating Systems for Transport Applications), leaving smart cards vulnerable to hacking, data breaches, and unauthorized access. This not only compromises user privacy but also undermines trust in smart card systems. Ensuring SCOSTA-approved chips is essential to ensure the integrity and security of the Transport Data in India and, the same, therefore, is mandated under the tender as well.
In the wake of Complaint of Dr. Soi, seeking detailed investigation and suitable strict action against the Company and all delinquent allowing such scam and irregularity to perpetuate, he had been assured that a thorough and impartial probe would be carried out in the matter post polling on May 13, 2024.
Dr. Soi stated that on 24.05.2024, the Transport Commissioner wrote to the Managing Director of TTSL regarding the complaint received from him, regarding the alleged illegal activities and involvement of M/s. Colorplast India Pvt. Ltd. in using substandard and cheap quality Chinese module / chips instead of 64kb SCOSTA compliant cards. The Transport Department had further informed TTSL that the Transport Department had sent samples of DL and RC to NIC for testing the quality in respect of the specifications and standard as specified in the tender document and agreement signed with M/s. Colorplast India Pvt. Ltd.
Dr. Soi further stated that on 10th June 2024, NIC, MIETY, Smart Card Technology Division has confirmed that they had received 20 number of cards with two different ATRs. They confirmed that on testing with the OEM tool to identify the chip maker and model they found that 12 cards were found to be non-complaint for Chip-Make- Samsung & Chip model-S3K140A.
That on 24th June 2024, the Transport Commissioner issued a Show Cause Notice to M/s. Colorplast India Pvt. Ltd. wide letter number 2036/IT/2023 regarding non-conformity to the quality of cards as per the terms and conditions of the RFP and award of notification dated 15-6-2023 show causing them why action should not be taken against them for the serious lapses asking them to submit their explanation in the matter within 10 days of received of the Show Cause Notice.
– I have received the above-mentioned report of NIC and the show-cause notice issued to M/s. Colorplast India Pvt. Ltd. from the Whistleblower and appended herewith for your reference.
It is submitted that in view of complete inaction in the matter as no response was received from M/s. Colorplast India Pvt. Ltd., Dr. Soi, on August 07, 2024, again wrote to the Transport Department to take strictest action in the matter against M/s. Colorplast India Pvt. Ltd. by (i) recovering the complete cost of the project (ii) Imposing of heavy and deterring penalties to ensure that contractors do not befool the transport department in future by supplying cheap and sub-standard non-conforming products (iii) debarring/ blacklisting M/s. Colorplast India Pvt. Ltd. from participating in any future tenders brought by the State Government of Telangana.
QUESTION IS >>>WHETHER ANY RESPONSE RECEIVED? IF YES WHAT ARE THE FINDINGs?
In light of these developments, Dr. Soi urges the media, as the fourth pillar of democracy, to highlight the urgent need for stringent regulatory oversight and proactive governance to safeguard citizens’ data and maintain national security. The outcome of the investigations and subsequent punitive actions taken will be critical in determining future practices and regulations in the smart card industry, impacting policy-making and regulatory frameworks within government contracts and supply chains across India.
I trust that thru the intervention of the media, as the fourth pillar of democracy the Transport department shall take swift and decisive action to rectify this situation. However, despite your intervention, should remedial measures not be forthcoming, I will be compelled to explore further legal recourse in the interest of public welfare.
About RAAHAT
RAAHAT is a non-profit, non-government Organization, under the name and style of “Raahat the Safe Community Foundation” registered under the Societies Act 1860 bearing Registration No. 467/2005. RAAHAT, established and working since 2006 to ensure effective implementation of various policies and guidelines in various fields for ensuring rights and benefits to the public at large coupled with compliance of various laws, for the health, safety and well-being of the general public of India, besides seeking effective implementation of the laws relating to Motor Vehicles Act and Rules and making people at large aware of the basic Traffic Rules, Regulations made for their safety and security thus avoiding loss of lives and road accidents.
For further information contact: Dr Kamal Soi Email: kamaljsoi@gmail.com
Mobile: 7863900003; 9815033333 Web: www.kamalsoi.com
Phd, MSc, MBA, LLB, MEP (IIMA), MDP (ISB), MITE, MACRS, MCIHT. ASSE (Sustainable Safety Expert)
o President – GSHP, Global Society of HSE Professionals
o Ex Vice Chairman -PSRC, Department of Transport, Government of Punjab.
o Member- NRSC, Government of India, Ministry of Road Transport & Highways.
o Chairman@Raahat-The Safe Community Foundation
o Member -European Association for Accident Research & Analysis
o Adviser -European Union, Member- International Road Federation Member – IEEE, Member -ASSE (American Society of Safety Engineers)
o Member- Institute of Highway Engineers, Member-Indian Road Congress
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