The Telangana Crime Investigation Department (CID) has arrested 14 rice millers after registering three cases over diversion of fine variety (Sanna Rakam) paddy and substitution of the rice supplied to the Food Corporation of India (FCI) during the Kharif 2025-26 season.
The investigation was taken up following a complaint by the General Manager (Procurement) of the Telangana Civil Supplies Corporation on October 24. According to the CID, certain millers allegedly diverted Sanna Rakam paddy to the open market and supplied cheaper coarse rice, including rice allegedly sourced from outside Telangana, in its place.
The government had procured 71.86 lakh metric tonnes of paddy during Kharif 2025-26 against a target of 59.60 lakh metric tonnes of rice for delivery to the FCI.
Inspections by Enforcement and Task Force teams, followed by laboratory analysis, reportedly found that rice samples supplied in the cases examined did not conform to the Sanna Rakam variety specified in the allotments. The alleged substitution raised concerns over violations of the Custom Milled Rice agreement and financial loss to the government, the CID said in a statement.
In Nizamabad, Karimnagar and Mulugu districts, 16 rice mills reportedly delivered 3,385.820 metric tonnes of Coarse variety (Doddu Rakam) rice against Sanna Rakam allotments. The estimated bonus-related loss from these deliveries was around ₹1.69 crore.
The CID said another 45,414.833 metric tonnes had been allocated for conversion, involving a potential bonus-related financial implication of around ₹242 crore. However, timely intervention by Civil Supplies authorities and stoppage orders prevented further potential loss, according to the department.
The investigation is now focused on establishing the alleged diversion and substitution of rice varieties, the role of the millers, how allotments and conversion requests were processed, and the actual financial loss. The CID is also examining whether officials or other persons were involved and whether the evidence supports charges of criminal conspiracy or other offences. Further investigation is underway.
Published – October 25, 2026 06:57 pm IST
