CBI Launches Investigation into Rice Allocation Scam Involving Officials

New Delhi, September 1: The Central Bureau of Investigation (CBI) has filed a case regarding irregularities in the allocation of rice at subsidized prices. This case involves former officials of the Food Corporation of India (FCI) in Delhi, the former Managing Director of the North Eastern Regional Agricultural Marketing Corporation Limited (NERAMAC), certain unidentified government employees, and others.

The scandal came to light in June when a vigilance report from the Ministry of Consumer Affairs, Food and Public Distribution revealed discrepancies in the rice allocation process. Following this, a neutral committee was established to investigate how FCI allocated rice to NERAMAC under the Open Market Sale Scheme (OMSS) for state governments.

The investigation revealed that the FCI Delhi region allocated a total of 62,000 metric tons of rice to NERAMAC, of which NERAMAC lifted 50,645 metric tons. This rice was provided at a subsidized rate of ₹23,200 per metric ton, while the market or reserve price at that time was approximately ₹28,900 per metric ton.

According to the investigation, NERAMAC was not eligible to receive rice without an e-auction, as this facility was only available to state governments and their corporations, not to central government companies.

Another significant irregularity was uncovered: the payment for the rice allocation did not come directly from NERAMAC but was funneled through various private companies, including rice millers and wholesale dealers.

Moreover, no records were found during the investigation to prove that the rice allocated to NERAMAC was distributed to the public for the intended purpose. Additionally, the First In First Out (FIFO) rule for utilizing older stock was not adhered to.

The vigilance report indicated that if the same quantity of rice allocated to NERAMAC at the subsidized rate had been sold through e-auction at the reserve price of ₹28,900 per metric ton, FCI could have gained approximately ₹28.87 crore. This indicates a direct loss to the government. The CBI has now commenced a thorough investigation into this matter.