CID arrests 16 rice millers across TG over paddy diversions

Hyderabad: The Telangana Crime Investigation Department (CID) has launched an investigation into alleged irregularities in government-procured paddy and custom-milled rice (CMR), with 16 rice millers reportedly arrested across the state. The millers are accused of diverting paddy meant for government delivery, hoarding rice stocks and supplying coarse rice in place of the fine-quality variety required under the procurement arrangements.

The investigation covers several districts, including Nizamabad, Nalgonda, Karimnagar, Ranga Reddy, Mulugu and Medak. Officials are examining allegations that thousands of tonnes of government-allocated paddy were diverted and that rice intended for public distribution or government procurement was substituted with lower-quality varieties.

In a major development in Mulugu district, five rice millers have reportedly been taken into custody and shifted to the CID office in Warangal. They include Badam Praveen, president of the Mulugu District Rice Millers Association and owner of Badam and Srimatha Rice Mills; Mohan of Lepakshi Rice Mill; Raghotham of Sairam Rice Mill; Shravan of Vasavi Rice Mill and Harinath of LSR Rice Mill.

According to the allegations, the millers had previously received notices about irregularities involving the use of paddy meant for delivery to the government as CMR and the accumulation of outstanding dues running into crores of rupees. The CID is investigating the alleged diversion of stocks and compliance with milling and delivery obligations.

The probe also focuses on paddy allocations made during the 2025-26 Kharif season. Preliminary findings reportedly indicate that 16 rice mills in Nizamabad, Karimnagar and Mulugu districts supplied 3,385.820 metric tonnes of coarse rice instead of the required fine-quality variety to the Food Corporation of India (FCI). The alleged substitution is estimated to have caused a loss of approximately Rs 1.69 crore to the government in bonus payments.

Officials are also examining the allocation of an additional 45,414.833 metric tonnes of paddy for milling. If irregularities are established in these allocations, the potential financial impact on the government through bonus payments could amount to approximately Rs 242 crore, according to preliminary estimates.

The CID is investigating the role of the millers and examining whether government officials were involved in the alleged irregularities. Investigators are also looking into the possibility of a wider network behind the diversion of paddy, substitution of rice varieties and accumulation of stocks.

The investigation is aimed at establishing the extent of the alleged losses to the government and determining responsibility for violations of procurement and custom-milling rules. Further action is expected based on the findings of the ongoing probe.

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Mouli Mareedu

Mouli Mareedu