Whistleblower Alert: NGO Flags National Security Breach in Telangana Smart Card System

Raahat Foundation has accused the Telangana Transport Department of compromising national security by using smart cards with Chinese chips supplied by Colorplast India. Despite NIC confirming the security lapse, no action has been taken yet. The NGO urges swift penalties and blacklisting.

By Alok Mishra Updated: Jul 19, 2025, 18:53 IST

Hyderabad | September 16, 2024: A major controversy has erupted over the procurement of smart cards by the Telangana Transport Department, following allegations of serious security lapses. Raahat – The Safe Community Foundation, a leading public safety NGO, has raised red flags over the use of substandard Chinese chips in smart cards supplied by Colorplast India Pvt. Ltd., accusing the firm of violating tender terms and endangering national cybersecurity.

The NGO’s chairman, Dr. Kamal Soi, submitted a detailed complaint to the Telangana Transport Minister, warning that the Chinese-origin chips used in these cards may allow backdoor access and lead to potential espionage or data breaches. These chips reportedly fail to meet the SCOSTA (Smart Card Operating Systems for Transport Applications) security standards mandated by the government.

Tender Details and Series Under Scrutiny:

In February 2023, the Telangana Transport Department awarded a one-year rate contract to Colorplast India Pvt. Ltd. to supply 64K SCOSTA pre-printed smart cards. However, the following card series have been flagged for using non-compliant chips:

RC0380000/24 onwards
RC0460000/24 onwards
DL0358000/24 onwards
DL0284000/24 onwards
DL0362000/24 onwards

The complaint alleges that these cards use cheap Chinese modules lacking the required SCOSTA security protocols, making them highly vulnerable to cyber threats.

Investigation Timeline:

May 24, 2024: The Transport Commissioner wrote to the Managing Director of TTSL acknowledging Dr. Soi’s complaint and confirmed that samples were sent to NIC for testing.
June 10, 2024: NIC’s Smart Card Technology Division confirmed that 12 of the 20 tested cards used non-compliant Samsung S3K140A chips.
June 24, 2024: A show-cause notice was issued to Colorplast India Pvt. Ltd. for failing to meet the quality standards as per the tender agreement.

Despite this, Dr. Soi claims that the company has not responded to the notice. On August 7, 2024, he again urged the Transport Department to:

Recover the full project cost
Impose heavy penalties
Blacklist Colorplast India Pvt. Ltd. from future government contracts

Call for Media & Regulatory Action:

Dr. Soi has urged the media and government to take immediate action to safeguard citizens' data and prevent further breaches. He warned that if no decisive steps are taken, legal action may be pursued in the interest of public safety.

About Raahat:

Raahat, The Safe Community Foundation, is a registered NGO working since 2006 to promote public safety, enforce motor vehicle laws, and raise awareness on traffic regulations and community welfare across India.