Telangana CID arrests 14 rice millers over Sanna Rakam rice delivery irregularities

Hyderabad, Oct 25 (TNT): The Telangana Crime Investigation Department (CID) has registered three criminal cases and arrested 14 rice millers in connection with alleged irregularities in the delivery of Sanna Rakam rice to the Food Corporation of India (FCI) during the Kharif 2025–26 season.

Te investigation was initiated following a complaint lodged by the General Manager (Procurement) of the Civil Supplies Corporation on October 24, 2026, the CID said in a release on Sunday.

The preliminary investigation indicated that certain rice millers allegedly diverted Sanna Rakam paddy allotted to them to the open market and supplied cheaper coarse rice, including rice allegedly sourced from outside Telangana, in its place.

Inspections conducted 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 has raised concerns over violations of the Custom Milled Rice (CMR) agreement and possible financial losses to the State government.

In Nizamabad, Karimnagar and Mulugu districts, 16 rice mills reportedly supplied 3,385.820 metric tonnes of coarse (Doddu Rakam) rice against Sanna Rakam allotments, resulting in an estimated bonus-related loss of around Rs 1.69 crore, it said.

Another 45,414.833 metric tonnes had reportedly been allocated for conversion, involving a potential bonus-related financial implication of approximately Rs 242 crore.

Timely intervention by Civil Supplies authorities and stoppage orders prevented further potential loss, the CID said.

The alleged violations include breach of the Kharif Marketing Season 2025–26 CMR agreement, criminal breach of trust and conspiracy to cause wrongful loss to the government exchequer.

The CID said the investigation was continuing to establish the alleged diversion and substitution of rice varieties, examine the role of millers and the processing of allotments and conversion requests, quantify the actual financial loss and determine whether any officials or other persons were involved in a possible criminal conspiracy.

Further action will be taken based on the evidence collected and applicable law, it added.

TNT TS