Rs 1,160 Crore Rice 'Scam' Widens: 56 Mills, 22 Ethanol Plants Under Scanner
Authorities are investigating a potential Rs 1,160 crore scam involving the suspected diversion of government rice intended for ethanol production. The probe has expanded to include 56 processing mills and 22 ethanol plants to determine if subsidized stock was illegally rerouted.
Investigators are examining the allocation of nearly 5 lakh metric tonnes of government rice meant for conversion into ethanol. The primary focus of the inquiry is to establish whether this stock was genuinely processed as intended or if it was illegally diverted through private channels.
The scope of the probe has widened significantly, with 56 mills and 22 ethanol plants now under official scanner. Authorities suspect that a portion of the subsidized rice may have been redirected through private mills before being cycled back into government warehouses to satisfy quotas fraudulently.
Financial implications of the alleged irregularities are estimated at approximately Rs 1,160 crore. Forensic audits and physical stock verifications are currently underway at the implicated facilities to reconcile production records with the amount of grain received from state agencies.
The investigation continues to seek evidence regarding the logistical chain and the involvement of middlemen in the suspected diversion scheme. Source: Investigators / News Reports.
