04/12/2022

VERY VERY URGENT

To,
The Managing Director,
Tamilnadu Civil Supplies Corporations (TNCSC),
No.12, Thambusamy Road,
Kilpauk, Chennai

Sir,

Sub: Request to release the outstanding payment of more than 900

Crores which is at most important to our day to day operations
and survival– reg.

Ref:
1) Tender bearing Tender Ref No. MT9/047397/2019 dated
20.10.2019.
2) Out letters dated 30.08.2022, 28.09.2022, 12.10.20022,
19.10.2022, 29.10.2022 & 04.11.2022 addressed to SRM/RM of
13 regions.
3) Our letter dated 04.11.2022

*****
We wish to state the following facts for your consideration:-

1) We have entered into the tender cited in Ref (1) and we are
awarded the work of movement of goods/stocks of TNCSC in 20
regions (Districts) in the State of Tamilnadu. Accordingly, we are
carrying out the movement as per the requirements of Regional
Offices.

Page 1 of 3
2) On completion of the movements, we are submitting the bill of
supply/tax invoices at the respective Regional Offices of TNCSC.

3) With regards to the payment of bills, we regret to inform your good

self that despite our fervent pleas to release the payments that
have been inordinately delayed from your part resulting in
mammoth outstanding to be received from TNCSC to the tune of
more than Rs.900 Crores totalling the 13 Regional Offices of
TNCSC. It is invited to your attention that, various letters cited in
Ref (2) have been addressed to respective RM/SRMs seeking for
release of payments and furthermore, vide letter cited in Ref (3)
we have also requested your goodself to release the payments
immediately.

4) However, no payments have been released during the past 6

months and this has resulted in severe financial burdens and
ramifications which are elaborated hereunder:

Ramifications of non-payment:-

a) Not able to meet out day to day expenses viz., hire charges to
truck operators, diesel expenses, driver bata .etc.,
b) The said non-payment has affected our goodwill and has
created fears among associates concerned and creditors in the
market.
c) Due to continuous default of payment, we could not able to
obtain any credit in the market.
d) Moreover, we have been pushed to eventual financial ruin
which may lead to disruptions in performing our obligations as
we have been completely deprived of operational funds.

5) We would like to stress upon the fact that, the service rendered by
us relates to supply of essential commodities that are to be
supplied for the poor and needy masses of this state. We wish to
bring to your fact that, till now we have been putting our sincere
efforts to maintain the operations entrusted upon us and any

Page 2 of 3
 further non release of payment will seriously hamper the
operations for which we may not be held responsible.

6) In view of the above circumstances, it is urgently requested

that your good self shall release the payments in an expedient
manner. Any failure to release the payment of bills amounting to
more than Rs.900 Crores as per the terms of the contract will
definitely prevent us financially from continuing the operations,
which is solely attributable on your part and for such failure, we
are not liable to be held responsible in any manner and further it
will affect our reputation, good will, loss of our credit worthiness
besides affecting the public interest at large.

Thanking you,
Yours sincerely

For. M/s Zinc Foods Private Limited

Encl-
1) Out letters dated 30.08.2022, 28.09.2022, 12.10.20022,
19.10.2022, 29.10.2022 & 04.11.2022 addressed to SRM/RM of
13 regions.
2) Our letter represented to your good self dated 04.11.2022.

CC To-
1) The Principle Secretary to the Government,
Co-operation food and Consumer Protection Department,
Secretariat,
Chennai-600 009.

2) To 20 Regional Managers

Page 3 of 3