Ethanol scam: Subsidised rice being diverted to pvt mills in MP, probe ordered
Authorities in Madhya Pradesh have launched an investigation into a suspected criminal racket involving the diversion of government-subsidized rice meant for ethanol plants. The scheme allegedly involves recycling the rice back into the procurement cycle to fraudulently claim multiple government payments.
Why it matters
This highlights significant systemic corruption and financial leakage within government subsidy programs, potentially costing taxpayers millions.
BHOPAL: Subsidised rice despatched to empanelled ethanol plants in MP is allegedly being diverted to private mills, reintroduced into the procurement and custom milling cycle and sold back to govt agencies, police said on Friday after forming an SIT to probe the suspected racket.The trigger for the criminal investigation was a Food Corporation of India (FCI) complaint about a consignment meant for an ethanol unit in Chhindwara never reaching its destination. Police traced the missing batch of subsidised rice to a mill in Balaghat, adding grist to suspicion about a statewide nexus involving transporters, rice mills and ethanol companies.Four people have been arrested in the case so far amid multiple complaints of alleged diversion of rice sanctioned under an ongoing subsidy scheme to ramp up production of ethanol for blending with petrol."We will get to the root of this," IGP (Balaghat range) Lalit Shakyawar said of racketeers exploiting the Centre's…
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