Subsidised rice meant for labourers sold to traders: CBI probes Rs 28-crore ‘scam’

The Central Bureau of Investigation (CBI) registered an FIR last week against former officials of the Food Corporation of India (FCI), officials of the North Eastern Regional Agricultural Marketing Corporation (NERAMAC), and private traders over an alleged Rs 28.87-crore rice scam.

According to the FIR, registered by the CBI’s anti-corruption unit, the FCI's Delhi region allegedly allotted 62,000 metric tonnes (MT) of rice to NERAMAC under the state government/corporations quota for Open Market Sale Scheme (Domestic) [OMSS(D)] 2025–26, a programme run by the FCI to sell surplus wheat and rice in the open market.

NERAMAC allegedly lifted approximately 50,645 MT at a concessional rate of Rs 23,200 per metric tonne (Rs 23.20 per kg), compared to the prevailing reserve price of Rs 28,900 per metric tonne. The CBI alleged that under the OMSS(D) policy dated July 10, 2025, NERAMAC, a central government-owned enterprise, was ineligible for non-auction allotments, a privilege reserved strictly for state governments and state corporations.

Had the lifted quantity been auctioned at the reserve price, FCI would have earned an additional Rs 28.87 crore, the agency claimed. The complaint was forwarded to the agency by Rizwan Ahmed, Section Officer (Vigilance), Department of Food and Public Distribution, Ministry of Consumer Affairs, Food and Public Distribution, along with reports of a Neutral Committee and the FCI’s vigilance wing.

The Neutral Committee had been constituted to examine the allotment of rice to NERAMAC by the FCI’s Delhi region. The FIR says that NERAMAC had sought allocation of 31,000 MT of rice per week under OMSS(D), claiming that the rice was intended to ensure availability at affordable rates to the general public, daily-wage earners, labourers, migrant workers in Delhi, and persons not covered under the public distribution system due to non-availability of ration cards.

However, the CBI alleged that the rice was not distributed for the stated purpose. Instead, according to the FIR, private entities and traders were allegedly used in the lifting and further sale of the rice. The case names eight accused, including two Assam-based companies and a Kolkata-based firm.

The FIR further alleged that the accused Rajesh Bajaj and Pankaj Saraf did not distribute the rice to the intended beneficiaries. Instead, they allegedly contacted traders in Delhi-NCR and asked them to lift rice from FCI depots after depositing money at Rs 23.25 per kg into NERAMAC’s bank account and paying commission ranging from Rs 0.64 to Rs 2.50 per kg.

According to the FIR, the funds were remitted in advance into NERAMAC’s bank account and later transferred to FCI Delhi region for allocation and release of rice after deducting administrative charges at 5 paise per kg. The rice was lifted from FCI depots at Ghevra, Mayapuri and Narela, the FIR said.

The CBI has alleged that the traders further sold the rice to other traders, earning huge profits. Mahender Singh Manral is an Assistant Editor with the national bureau of The Indian Express. He is known for his impactful and breaking stories.

He covers the Ministry of Home Affairs, Investigative Agencies, National Investigative Agency, Central Bureau of Investigation, Law Enforcement Agencies, Paramilitary Forces, and internal security. Prior to this, Manral had extensively reported on city-based crime stories along with that he also covered the anti-corruption branch of the Delhi government for a decade.

He is known for his knack for News and a detailed understanding of stories. He also worked with Mail Today as a senior correspondent for eleven months. He has also worked with The Pioneer for two years where he was exclusively covering crime beat.

During his initial days of the career he also worked with The Statesman newspaper in the national capital, where he was entrusted with beats like crime, education, and the Delhi Jal Board. A graduate in Mass Communication, Manral is always in search of stories that impact lives.

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