Telangana rice scam: ETF officials, millers suspected of nexus

Hyderabad: The alleged involvement of officials of the Civil Supplies Department in the Rs. 6,000 crore Custom Milled Rice (CMR) scam is coming to light, with investigations by the Vigilance and Enforcement Department and the Crime Investigation Department (CID) pointing to possible collusion between certain Enforcement Task Force (ETF) officials and rice millers.

Officials entrusted with preventing irregularities in the allocation and delivery of CMR are suspected to have facilitated violations by millers. Investigators are also examining allegations that some ETF officials used private offices and their official positions to manage illegal activities.

According to the findings of the probe agencies, more than 300 rice millers are estimated to have defaulted on CMR dues amounting to nearly Rs. 4,000 crore out of the total Rs. 6,000 crore pending across the State. Three districts alone account for nearly 25 per cent of the outstanding dues. These include Rs. 670 crore in a north Telangana district, around Rs. 600 crore in a south Telangana district and Rs. 300 crore in another neighbouring district.

The investigation has reportedly revealed alleged links between certain district-level Civil Supplies officials and ETF personnel in facilitating irregularities. An ETF Officer on Special Duty (OSD) was recently removed, while the CID has arrested another official in connection with the alleged scam.

The role of long-serving retired officials appointed as OSDs in the ETF has also come under scrutiny. Several retired officers have reportedly continued in the department for five to 10 years. Despite directions issued after the Congress government assumed office to remove OSDs, the changes were not fully implemented. Even after around 20 additional Grade-I officers were appointed to strengthen the enforcement wing, some OSDs allegedly continued to wield influence.

Investigators are examining instances in which CMR defaulters allegedly established new rice mills in the names of benamis to secure fresh allocations. In one case in south Telangana, a defaulting miller reportedly opened eight rice mills in another district through benamis without attracting the attention of the ETF.

Irregularities have also been reported in Nirmal district, where 24 new rice mills were granted permissions over four years. Investigators suspect that even small mills operating from sheds received CMR allocations and diverted rice stocks for sale outside the government procurement system.

In another instance, a rice mill in Mulugu district reportedly received CMR allocations despite lacking the required Sortex machinery. Officials are examining how the mill managed to secure allocations and allegedly arranged for the machinery to be installed shortly before inspections.

The probes are also looking into the alleged selective seizure of paddy and rice-laden lorries. In one incident in August, ETF officials reportedly intercepted 10 lorries transporting rice in a south Telangana district but registered a case against only one vehicle and allowed the remaining vehicles to go. Investigators are examining allegations that money changed hands in the process.

The alleged opening of private offices by ETF officials and their links with rice millers, besides complaints of collecting money from millers in districts close to the State capital, are also being examined.

The ongoing investigations are expected to bring further details of the alleged nexus between rice millers and officials responsible for monitoring CMR allocations and recoveries.

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