Hyderabad: The vigilance and enforcement department has detected diversion of 8.73 lakh metric tonnes (LMT) of paddy worth Rs 2,200 crore, meant for custom milling rice (CMR) and government auctions, following raids on nearly 300 rice mills across 26 districts in Telangana since mid-July.
Of the total diverted stock, more than 4 LMT was meant for CMR, while the remaining quantity was earmarked for auctions.
Officials said Rs 1,500 crore had been recovered from millers against the detected shortfall.
“We have found a Rs 2,200 crore worth deficit and recovered Rs 1,500 crore from the millers.
We have investigated the CMR and auction bidding shortage, which led to this massive shortfall,” a higher official told Deccan Chronicle.
Vigilance officials arrested 25 accused, mostly rice millers, during the raids under provisions of the Essential Commodities Act and the Bharatiya Nyaya Sanhita (BNS) relating to criminal breach of trust.
Suryapet accounted for the highest value of diverted paddy stocks at Rs 430 crore, followed by Nizamabad at Rs 245 crore and Nirmal at Rs 230 crore.
Officials found that millers in these districts had illegally sold paddy stocks.
Under the CMR system, the State Civil Supplies Corporation procures paddy from farmers at the minimum support price (MSP) and allocates it to empanelled private rice millers.
The millers are required to process the paddy and return a specified percentage as rice to the Food Corporation of India or state civil supplies godowns for the public distribution system (PDS).
Paddy auctions are conducted through online bidding to dispose of stocks, recover government funds and clear excess inventory.
The vigilance investigation also identified lapses and deficiencies on the part of civil supplies department officials, particularly in monitoring stocks allocated to rice mills.
“Periodic inspections could have kept in check pilferage.
There are also allegations of misuse where paddy allocations are more.
Recovering dues from millers is also a major challenge for Civil Supplies,” observed an official.
Following concerns over artificial scarcity and price manipulation, the civil supplies department, Enforcement Task Force (ETF) and legal metrology department jointly conducted surprise inspections at retail and wholesale rice establishments.
After the raids, the civil supplies department registered 11 FIRs and initiated legal action against 18 trading establishments in Hyderabad and Ranga Reddy districts between October 29 and 31.
Officials found traders selling 25-kg rice bags with labels indicating 26 kg.
Some establishments had pasted higher price stickers over the manufacturers’ original printed rates.
The inspections also revealed that several establishments were operating without mandatory trade, GST, labour or Food Safety and Standards Authority of India (FSSAI) licences.
Officials detected diversion and hoarding of rice meant for the PDS.
Enforcement teams recorded the violations through photography and videography to support legal proceedings.
The FIRs were registered at Saroornagar, Jeedimetla and Alwal police stations against repeat offenders.
The accused face prosecution under the Essential Commodities Act and BNS provisions, with possible imprisonment of up to seven years.
GFX: Ongoing Probe By Vigilance & Enforcement (July–October)
– Rs 2,200 crore worth of paddy diverted.
– Nearly 300 mills across 26 districts covered.
– 8.73 LMT includes both CMR- and auction-related paddy.
– 25 accused arrested; 63 FIRs registered.
– Suryapet, Nizamabad and Nirmal topped the list of districts with diverted stocks.
Findings:
– Large-scale shortage of physical verification.
– Improper stock registration and mismanagement.
– Improper storage of paddy, leading to deterioration.
– Lapses on the part of the Civil Supplies Department.
– Lack of periodic inspections, leading to pilferage.
– Misuse of paddy when allocations exceed requirements.
– Delays in recovery of dues from millers.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: deccanchronicle.com
