Vigilance Intensifies Inspections Of Rice Mills Over CMR Fraud

ADILABAD:Vigilance officials of the Telangana state civil supplies corporation have intensified inspections of rice mills over alleged misappropriation of Custom Milled Rice (CMR) as against the paddy supplied to them by the state government.

Officials are probing allegations that some rice mill owners invested money obtained through CMR misappropriation in real estate and film industry.

Paddy cultivation is extensive in Peddapalli, Karimnagar, Bhupalpally, Warangal, Nirmal and Mancherial districts. There are many rice and parboiled rice mills in these districts.

A vigilance officer involved in the inspections, speaking on condition of anonymity, said the properties of mill owners involved in CMR fraud, including investments in lands, could be attached to recover the amounts involved.

Owners of rice mills facing CMR fraud cases are reportedly concerned over the deployment of personnel from Greyhounds and OCTOPUS in the civil supplies department to assist with inspections and investigations.

There are reports that some mill owners backed by local political leaders are considering supplying the pending CMR or paying an equivalent amount and penalty to the state government.

Recently, Khanapur police have registered a case against former MLA Anjeema Rekha Naik, owner of ARS Industries Rice Mill at Sattenapalli in Nirmal district, for alleged misappropriation of CMR rice. Officials found that paddy supplied by the state government worth ₹40.96 crore has allegedly been misappropriated by ARS Industries.

In another case, Luxettipet police issued PD Act notices under Sections 3(1) and 3(2) of the Prevention of Black Marketing and Maintenance of Supplies of Essential Commodities Act, 1980, to Gampa Santosh Kumar, managing partner of Ram Laxman Industries Rice Mill in Lingapur village of Dandepalli mandal in Mancherial district. Santosh Kumar is facing allegations of diverting CMR worth ₹15.70 crore into the black market. Vigilance inspections found that 6,170.643 metric tonnes of paddy had allegedly been diverted.

Telangana government has directed the state civil supplies corporation to take stern action against those involved in CMR misappropriation and recover the amounts involved. Officials have been asked to invoke the PD Act against mill owners involved in fraud to prevent further diversion and repetition of such offences.