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Hyderabad: The Telangana Crime Investigation Department (CID) on Sunday launched massive coordinated raids across multiple districts in the state and arrested 14 rice millers for alleged large-scale diversion of Sanna Rakam rice meant for the Food Corporation of India (FCI).

Three criminal cases have been registered in connection with the fraud, TG-CID Director Charu Sinha said. The action follows a complaint lodged by the General Manager (Procurement), Telangana Civil Supplies Corporation on October 24, regarding irregularities in rice deliveries during Kharif 2025-26. According to the CID, the state government procured 71.86 lakh metric tonnes of paddy during Kharif 2025-26, against a target of 59.60 lakh metric tonnes of rice for delivery to FCI.

Preliminary investigation revealed that certain millers diverted the premium Sanna Rakam paddy allotted to them to the open market and supplied cheaper Doddu Rakam (coarse) rice, including rice sourced from other states, in its place.

Inspections by the Task Force teams followed by lab analysis confirmed that the samples supplied did not conform to the Sanna Rakam variety stipulated in the allotments.

In Nizamabad, Karimnagar and Mulugu districts alone, 16 rice mills delivered 3,385.820 metric tonnes of Doddu Rakam rice against Sanna Rakam allotments, causing an estimated loss of Rs 1.69 crore.

The CID said another 45,414.833 metric tonnes had been allocated for conversion, where timely intervention and stoppage orders by Civil Supplies authorities prevented a potential loss estimated at Rs 242 crore.

Overall, the substitution has caused an estimated loss of Rs 1.96 crore to the state exchequer so far.

The offences prima facie establish violations of the KMS 2025-26 CMR agreement, criminal breach of trust, wrongful gain and criminal conspiracy to cause wrongful loss to the government, Sinha said.The CID is now probing the state-wide diversion and substitution pattern, the role of millers, allotment processes, involvement of officials, and is collecting documentary and technical evidence to quantify the total loss.The CID registered the cases following a complaint by the Civil Supplies Corporation’s General Manager (Procurement) on October 24. 

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