Telangana officials detect Rs 2,200 crore paddy diversion across 26 districts
Vigilance raids on nearly 300 rice mills have led to 25 arrests and the recovery of Rs 1,500 crore.
The Telangana vigilance and enforcement department has identified the diversion of 8.73 lakh metric tonnes of paddy valued at Rs 2,200 crore, according to reports by Deccan Chronicle and Urban Acres. The investigation, which has been active since mid-July, involved raids on nearly 300 rice mills across 26 districts.
The diverted stocks were intended for government auctions or the custom milling rice (CMR) system. Under the CMR process, the state procures paddy at the minimum support price and provides it to private mills, which must then return processed rice to the Food Corporation of India or state godowns for the public distribution system (PDS).
Authorities have arrested 25 people, primarily rice millers, under the Essential Commodities Act and Bharatiya Nyaya Sanhita (BNS) provisions regarding criminal breach of trust. Suryapet recorded the largest diversion at Rs 430 crore, followed by Nizamabad at Rs 245 crore and Nirmal at Rs 230 crore.
The investigation highlighted monitoring weaknesses in the civil supplies department, including improper stock registration and inadequate physical verification. An official told Deccan Chronicle that periodic inspections might have prevented pilferage and noted that recovering dues from millers remains a challenge.
Separate inspections in Hyderabad and Ranga Reddy districts between October 29 and 31 targeted rice traders over concerns of price manipulation. Officials registered 11 FIRs and took action against 18 establishments for issues including selling 25-kg bags labelled as 26 kg and operating without mandatory licences.
The enforcement action continues as authorities examine mill allocations and outstanding dues. Accused traders face prosecution under the Essential Commodities Act and BNS, which can include up to seven years of imprisonment.