Telangana Rice Scam: Officials Accused of Colluding with Millers to Divert Government Rice

Investigations into the alleged ₹6,000-crore Custom Milled Rice (CMR) scam in Telangana have brought suspected irregularities within the Civil Supplies Department and its Enforcement Task Force (ETF) under scrutiny. According to the ongoing Vigilance and Enforcement and CID probes, some officials entrusted with preventing the diversion of government rice allegedly colluded with millers instead. Around ₹6,000 crore worth of CMR is reportedly pending from rice millers across the state, with nearly ₹4,000 crore attributed to around 300 major millers. Investigators have identified substantial dues in three districts, including approximately ₹670 crore in one northern Telangana district, ₹600 crore in a southern district and ₹300 crore in another nearby district. The probe is also examining allegations that some retired officials continued in ETF positions for several years and allegedly facilitated irregularities. One ETF officer was reportedly removed recently, while the CID has arrested another official.

Investigators are examining several alleged lapses, including the failure to identify mills allegedly established under benami names by defaulting millers, CMR allocations to inadequately equipped mills and irregularities in the verification of machinery. In Nirmal district, 24 new rice mills reportedly received permissions over four years, with the probe finding that CMR allocated to some small facilities was allegedly transported elsewhere and sold. In Mulugu, an ETF officer had reportedly certified the availability of a Sortex machine at a mill three years ago, although investigators recently found the machine being installed. The probe is also looking into allegations that officials operated private offices in Kodad and LB Nagar to deal with millers, the release of several PDS rice-laden lorries after only one case was registered, and financial assistance allegedly received from millers. Further scrutiny is focused on a senior ETF official's alleged links with millers, including his reported attendance at the inauguration of a mill owned by a businessman accused of misappropriating ₹3.5 crore in farmers' bonus payments. Investigators are also examining allegations of large cash payments to an ETF official by a mill operator whose establishment reportedly owes more than ₹20 crore in CMR dues. These allegations remain under investigation.