Two managing partners of Lakshmi Industries have been arrested in Telangana for failing to deliver custom-milled rice to the state government, causing a massive loss to the public exchequer.

  • Two rice millers arrested for embezzling rice worth ₹24.18 crore.
  • The accused are managing partners of Lakshmi Industries in Sulthanabad mandal.
  • The fraud occurred during the 2023-24 crop year milling process.

In a significant crackdown on agricultural fraud, the Sultanabad police on Monday arrested two rice millers for allegedly diverting custom-milled rice (CMR) intended for the state government. The estimated financial loss to the state exchequer is approximately ₹24.18 crore, marking one of the more substantial cases of procurement fraud in the region.

The arrested individuals have been identified as Renikunta Madhu (46) and R. Ravinder Reddy (48), both residents of Vallampatla village in the Rajanna Sircilla district. The duo served as managing partners of Lakshmi Industries, located in Suglampalli village of Sulthanabad mandal.

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According to official reports, the accused were allotted a specific quantity of paddy for milling during the 2023-24 crop year. However, instead of handing over the processed custom-milled rice to the government as mandated by the procurement agreement, they allegedly diverted the stock for illegal commercial gain.

Why This Matters

BozokMedia analysis shows that this incident highlights a systemic vulnerability in the public distribution and procurement system. When millers divert CMR, it not only creates a massive financial hole in the state budget but also threatens the stability of the Public Distribution System (PDS), which provides essential food security to millions of low-income citizens.

"The diversion of government-allotted grains is not just a financial crime, but a direct attack on the food security infrastructure of the state."

The operation was spearheaded by the Peddapalli Deputy Commissioner of Police B. Ram Reddy. Speaking to the media at the Sultanabad police station, DCP Reddy emphasized that the government would maintain a zero-tolerance policy toward those involved in the illegal diversion of government resources.

The arrests followed a comprehensive investigation initiated by a formal complaint lodged by the district manager of the Telangana State Civil Supplies Corporation Limited (TGSCSCL). Investigators spent weeks tracking the movement of paddy and the missing CMR output to build a foolproof case against the partners of Lakshmi Industries.

Did You Know?: Custom Milled Rice (CMR) is a critical part of the government's strategy to ensure that farmers get a fair price for their paddy while the state maintains reserves for welfare schemes.

Frequently Asked Questions

Q1: What is Custom Milled Rice (CMR)?
CMR is rice that is milled by private millers on behalf of the government, who provide the raw paddy and pay a milling fee.

Q2: Who filed the complaint against the millers?
The complaint was filed by the district manager of the Telangana State Civil Supplies Corporation Limited (TGSCSCL).