Hyderabad: The State government is now investigating a major “Rice Scam” during the BRS rule, following earlier revelations of issues in the Kaleshwaram and Power Purchase Agreements (PPA) scams. The investigation focuses on rice millers who failed to deliver Custom Milled Rice (CMR) to the government, as required, from 2021 to 2023.
Officials from the State Civil Supplies Department have received numerous complaints, particularly from districts, about rice millers defaulting on their obligations. In some cases, it was found that district officials had worked with these millers, resulting in significant losses for the government. In other instances, rice meant for CMR was diverted for other purposes, allegedly with the support of BRS leaders from the previous government.
The Vigilance and Enforcement wing of the Civil Supplies Department recently conducted raids and filed cases. A BRS leader and former MLA from Nizamabad district was caught selling paddy meant for CMR to commercial businesses in other states. Early investigations revealed that many rice mills in Karimnagar district did not deliver the required amount of CMR during the 2021-2022 season. Similar issues were found in Nalgonda district, where around 40% of the CMR was not delivered during the last monsoon season.
The data collected from rice mills on paddy stocks and rice deliveries did not match official records. According to regulations, rice mills are supposed to deliver rice within six months, but many millers did not follow this rule and instead used the paddy for their own profit. This has led to significant financial losses for the government, with the Civil Supplies Department now facing a debt burden of Rs 56,000 crore.
The Civil Supplies Department is currently compiling detailed data on CMR deliveries over the last 10 years of BRS rule. An official investigative report on the misuse of resources and the financial damage caused by the previous regime is expected to be released soon.
