Rice stocks at a milling facility amid a CID investigation into alleged irregularities in the supply of custom-milled rice to the Food Corporation of India. (DC File image)

The Crime Investigation Department (CID) has arrested seven rice millers from Mulugu district for allegedly selling fine-variety paddy procured by the government in the open market and supplying cheaper coarse rice to the Food Corporation of India (FCI) in its place. The alleged irregularities are estimated to have caused a loss of around ₹67 lakh to the government in bonus payments.

According to the CID remand report, 25 Custom Milled Rice (CMR) mills in Mulugu district were permitted to convert Grade-A paddy into common-variety paddy during the 2025–26 Kharif season after paying a price difference of ₹34.21 per quintal. However, inspections reportedly revealed that six mills had supplied coarse rice to the FCI instead of rice processed from the fine-variety paddy allocated to them.

The mills allegedly involved are Sri Mata Agro Tech in Abbapur, Lepakshi Industries in Mulugu, LSR Modern Binny Rice Mill in Pasra, Sairam Industries in Singarakuntapalli, Sri Badam Industries in Abbapur and Vaishnavi Industries in Mulugu.

The remand report stated that the six mills supplied 1,340.929 metric tonnes of coarse rice to the FCI in place of the stipulated fine-variety rice. The preliminary assessment put the loss to the government through bonus payments at approximately ₹67 lakh. The CID arrested Malyala Praveen Kumar, Yalagandula Mohan, Lanka Potharaju, Akkala Raghotham, Badam Anil Kumar, Badam Praveen Kumar and Komuravelli Harinath on October 25. Two other accused are absconding, CID DSP Vasam Sampath and Additional ASP Jitender said.

Investigators alleged that the millers made illegal profits by selling the fine-variety paddy in the open market, purchasing cheaper coarse rice from other regions and supplying it to the FCI. The remand report has also called for further investigation into the possible involvement of officials from the Civil Supplies Department and others in the alleged irregularities.

The report estimated that similar irregularities across Telangana had caused losses of approximately ₹242 crore to the State government.

The CID registered a case under provisions relating to cheating, criminal breach of trust and conspiracy, besides relevant sections of the Essential Commodities Act. It has submitted a remand report to the Mulugu court seeking judicial custody. 

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