Blacklisted Rice Mills Continue Ops, CMR Diversion Widens in Warangal

WARANGAL: A large-scale diversion of Custom Milling Rice (CMR) worth crores has been detected in the civil supplies department in the erstwhile Warangal district, following a vigilance and enforcement investigation.

The probe has identified alleged irregularities involving a section of rice millers and departmental officials, indicating diversion of government-procured paddy for private sale.

The findings were highlighted during a raid at Srisailam Mallanna Industries in Kaniparthy, Kamalapur mandal. Vigilance officials reported a shortfall of paddy valued at Rs 9.34 crore for the 2024-25 Yasangi season. Of the 9,016 metric tonnes (MT) allotted, the mill was required to supply 6,040 MT of rice to the government but delivered only 1,918 MT, accounting for 31 per cent.

Despite the reported deficit, officials are stated to be under pressure to conduct a physical re-verification, even as the mill continues to receive fresh kharif allocations.

According to the investigation, the alleged diversion follows a pattern in which millers receive government paddy but do not process it, instead selling it in the open market or moving rice to neighbouring states where prices are higher. In Elkathurthy mandal, a mill blacklisted over dues of Rs 7.50 crore remains under scrutiny. In Hasanparthy, another miller has pending delivery of nearly 900 MT despite repeated notices.

Department sources indicated that while a majority of millers comply with norms, a section allegedly uses influence to delay or avoid recovery. “Some millers manage officials by delivering old stocks to cover new season deficits, essentially running a private business with public property,” a senior official in the commissioner’s office remarked on condition of anonymity.

Complaints from within the milling sector were submitted to the civil supplies commissioner, alleging that 24 defaulting mills were allotted fresh paddy during the last kharif season despite outstanding dues. In one case, a Hasanparthy miller with pending dues of Rs 8 crore was allotted 320 ACK (86,400 quintals) of paddy.

For 2023-24, the department initiated auction of 2.92 lakh MT of undelivered paddy from 33 defaulting mills. However, bidders reportedly found no stock in the designated godowns. Officials stated that 1.83 lakh MT was recovered subsequently, while nearly Rs 107 crore remains pending.

“It is a case of 'collective sin' (Tila Papam Tala Pidikedu),” noted a whistleblower from the district. “When the vigilance department identifies a theft, civil supplies officials often delay filing FIRs or invoke minor 6A cases instead of the PD Act, allowing the culprits to escape,” he alleged.