Ethanol rice diversion probe widens amid ₹1,000-crore fraud allegations; 4 held
Four people have been arrested so far as investigation into the alleged diversion of government rice meant for ethanol production in Madhya Pradesh has widened
Four people have been arrested so far as investigation into the alleged diversion of government rice meant for ethanol production in Madhya Pradesh has widened to neighbouring Maharashtra. The Special Investigation Team (SIT) has so far arrested four people, including truck drivers, a transporter and a person associated with an ethanol plant, according to a report by The New Indian Express (TNIE). Around 20 trucks allegedly carrying diverted government rice have also been seized, while nearly 40 people, including rice millers, transporters and ethanol plant personnel, have been questioned. "So far, four persons, including truck drivers, a person associated with the concerned ethanol plant and a transporter, have been arrested. At least 13 trucks have also been seized," a police officer associated with the SIT told the publication. Notice issued to six rice mills Investigators have also issued notices to at least six rice mills in Balaghat and Seoni districts of Madhya Pradesh and Gondia district of Maharashtra, a report by Times of India mentioned.
The probe stems from an FIR registered after the Food Corporation of India (FCI) reported that a consignment of subsidised rice dispatched from its Navegaon warehouse in Balaghat district to AVJ Agrico Pvt Ltd's ethanol plant in Chhindwara was allegedly diverted and found inside Sancheti Rice Mill in Waraseoni instead of reaching its designated destination. Superintendent of Police Aditya Mishra, according to TOI, said investigators were examining allegations that around 1.4 lakh quintals of subsidised rice allocated for ethanol production had been "recycled" through the procurement and custom milling cycle before being supplied back to government agencies. Police are matching FCI dispatch records, GPS data, weighbridge entries and rice mill records to reconstruct the movement of each consignment and identify the beneficiaries of the alleged diversion. How the alleged diversion came to light The case first came to light on June 3 after a truck carrying 242.55 quintals of government rice meant for an ethanol plant in Chhindwara was intercepted during a joint inspection by revenue and food department officials at Sancheti Rice Mill in Balaghat's Waraseoni area, according to reports.
The consignment had been loaded from the FCI depot at Navegaon but never reached the ethanol plant. The district administration, after the seizure, informed Balaghat police, which registered an FIR and formed the SIT to investigate the alleged diversion. Four of the 13 accused named in the FIR have since been arrested. Investigators suspect the diverted rice was repacked by millers and supplied back to government procurement agencies as freshly produced Custom Milled Rice (CMR) under existing milling contracts instead of being used for ethanol production. The investigation has also raised concerns that some of the diverted stock may have included fortified rice enriched with essential vitamins and minerals and intended for distribution to children, pregnant women and adolescent girls under government nutrition programmes. What is Centre's ethanol blending programme The alleged diversion may extend well beyond the consignments detected so far. According to TNIE report, as much as 5 lakh metric tonnes of government rice worth over ₹1,000 crore, earmarked for ethanol production, may have been diverted and routed back into the procurement system rather than being converted into ethanol.
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