The CBI has uncovered a massive racket where subsidized rice meant for the underprivileged was diverted to private traders for profit, causing a loss of ₹28.87 crore to the exchequer.
- CBI filed an FIR against 8 individuals for a criminal conspiracy to divert subsidized rice.
- The scam involved the illegal diversion of 50,645 metric tonnes of rice from FCI depots.
- Estimated financial loss to the Food Corporation of India stands at ₹28.87 crore.
The Central Bureau of Investigation (CBI) has launched a crackdown on a sophisticated syndicate involving senior officials from the Food Corporation of India (FCI) and the North Eastern Regional Agricultural Marketing Corporation Ltd (NERAMAC). The agency alleges a coordinated effort to bypass the Open Market Sale Scheme (Domestic) [OMSS(D)] guidelines to enrich private traders at the expense of the public treasury.
The conspiracy unfolded between April 13 and May 15, 2026, when the FCI's Delhi Region allocated 62,000 metric tonnes (MT) of rice to NERAMAC. However, investigators found that instead of reaching the intended beneficiaries—such as daily wage earners and migrant workers—roughly 50,645 MT of the grain was lifted by private entities and sold for massive profits in the open market.
Why This Matters
BozokMedia analysis shows that this case highlights a systemic failure in the oversight of subsidized commodity distribution. When public servants manipulate allocation processes with "undue haste," it creates a loophole for corporate intermediaries to exploit. This is not merely a financial crime but a breach of trust in the state's social safety net, where essential grains are treated as commodities for illicit trade.
"The diversion of subsidized food grains represents a systemic failure in auditing and a grave violation of the mandate to protect the food security of the marginalized."
The financial discrepancy is stark. According to the FIR, the rice was released at a concessional rate of ₹23,200 per MT. Had the FCI followed the e-auction protocol at the reserve price of ₹28,900 per MT, the government would have earned an additional ₹28.87 crore. The CBI further notes that NERAMAC was not even eligible for such non-auction allocations under the 2025-26 policy.
Among those named in the FIR are former FCI Delhi Region General Manager Kunhiraman Padmini Asha, AGM Brahm Prakash, and Manager Amarendra Vikram. From NERAMAC, former MD Bhaskar Barua and other senior staff are implicated. To cover their tracks, the accused allegedly maintained bogus distribution charts and created antedated appointment letters for 23 fake sub-distributors.
| Metric | Subsidized Rate (OMSS) | E-Auction Rate (Potential) |
|---|---|---|
| Price per MT | ₹23,200 | ₹28,900 |
| Quantity Diverted | 50,645 MT | 50,645 MT |
| Financial Impact | Subsidized Loss | ₹28.87 Crore Gain |
Frequently Asked Questions
Q1: Who are the primary accused in the CBI FIR?
A: The FIR names eight people, including former FCI GM Kunhiraman Padmini Asha, NERAMAC MD Bhaskar Barua, and directors of private firms like Utapalakshi Agro Products.
Q2: How was the diversion concealed?
A: The accused allegedly used fake date-wise charts and forged appointment letters to simulate that the rice was being sold through retail outlets in Delhi and Noida.
