ED Claims Rs 175 Cr Rice Milling 'Scam' In Chhattisgarh, Says Bribes Funneled To 'Higher Powers'

In these various instances, the ED claims that significant kickbacks were generated through a network involving local politicians and bureaucrats.

The Enforcement Directorate (ED) on Monday (October 23) uncovered another "scam" in Chhattisgarh, a poll-bound state, alleging that a former managing director of the state MARKFED and an office-bearer of a local rice millers' association facilitated bribes amounting to Rs 175 crore for the "benefit of higher powers," news agency PTI reported. 

In recent months, the federal probe agency has revealed alleged improprieties in coal levies, liquor duties, and an illegal online betting app within the state. Chhattisgarh is governed by the Congress party under Chief Minister Bhupesh Baghel. 

In these various instances, the ED claims that significant kickbacks were generated through a network involving local politicians and bureaucrats. Several Indian Administrative Service (IAS) officers, a police official, and others have been arrested in connection with these cases, the report said. 

The latest revelation pertains to a custom rice-milling special incentive "scam". According to the ED, a similar nexus was discovered during searches conducted in Chhattisgarh against former MARKFED MD Manoj Soni, certain office-bearers of the state rice millers' association, including treasurer Roshan Chandrakar, district marketing officers (DMOs), and a few rice millers on October 20 and 21.

The ED's criminal action is based on a complaint filed by the income-tax department before a court in the state capital, Raipur. The tax department alleged that the office-bearers of the Chhattisgarh rice millers' association collaborated with MARKFED officers and conspired to misuse the special incentive, where the state government paid Rs 40 per quintal of paddy to rice millers for custom milling of rice.

Chhattisgarh is renowned as the rice bowl of the country due to its substantial paddy production.

The ED reported that this amount of Rs 40 was significantly increased to Rs 120 per quintal of paddy and was paid in two installments of Rs 60 each.

"The office-bearers of the Chhattisgarh state rice millers' association, under the leadership of its treasurer Chandrakar, in connivance with Soni, MD of MARKFED, started collecting a kickback amount of Rs 20 per installment for each quintal of paddy milled from the rice millers. The details of the rice millers who have paid the cash amounts were sent by the district rice millers' association to the concerned DMO," the ED revealed, as reported by PTI. 

The DMOs cross-checked the bills of the rice millers with the details received from the district rice millers' association, and this information was then forwarded to the MARKFED head office.

The MD of MARKFED only cleared the bills of "those rice millers who have paid a cash amount" to the association, according to the ED's allegations.

The ED's investigation found that due to the increase in the special allowance from Rs 40 to Rs 120 per quintal, payments totaling Rs 500 crore were released, resulting in the generation of "kickbacks" amounting to Rs 175 crore. These funds were allegedly collected by Chandrakar with the active assistance of Soni for the benefit of "higher powers."

During the raids, the ED claims to have seized "incriminating" documents, digital devices, and "unaccounted cash" amounting to Rs 1.06 crore.

The 90-member Chhattisgarh Assembly will hold elections in two phases on November 7 and November 17, with vote counting scheduled for December 3. Chhattisgarh's electoral competition is dominated by the two major national parties, the Congress and the BJP.