Madhya Pradesh: Ethanol Scam Hits MP, SIT Probe Ordered, AICC President Kharge Alleges Scandal May Be Of Scale of Rs 1,200 Crore
“Madhya Pradesh has become a Centre of loot by the BJP”: Mr. Kharge alleged in his X post
BHOPAL: A scandal allegedly involving transporters, rice millers and ethanol mafia has surfaced in Madhya Pradesh leading to the constitution of a special investigation team (SIT) by the Balaghat police to probe the matter.
Even as the SIT started probing into the seizure of a truck containing 242 quintals of subsidized rice, meant for an ethanol plant unit in Chhindwara district in Madhya Pradesh, from a rice mill facility in Balaghat district in the state, police suspected that the seizure of the consignment may be the ‘tip of an iceberg’ and the scam may have spread across Madhya Pradesh.
“We will dig deep into it”, inspector general of police (IGP) of Balaghat range Lalit Sakyawar said.
Amid the SIT spreading its probe into wider areas in the state, AICC president Mallikarjun Kharge on Saturday alleged that the scandal may be of the scale of Rs 1,200 crore.
“Madhya Pradesh has become a Centre of loot by the BJP”, Mr. Kharge alleged in his X post.
According to the police, the subsidized rice lifted from a Food Corporation of India (FCI) depot in Balaghat was meant to reach an ethanol making facility in Chhindwara district.
The truck carrying the rice consignment was seized from a rice milling unit in Balaghat district, leading the police to file an FIR in this connection.
Police probe suggested that the subsidized rice procured from the FCI for ethanol unit was recycled to the rice mill where the accused ‘intended to recycle the rice under the 2025-26 Custom Milling Programme and re-deposit it under the same scheme’.
The ethanol manufacturer involved in the scandal, instead purchases cheap rice for his unit, police said.
The subsidized rice is sanctioned to the ethanol units under the Centre’s policy to boost ethanol production for blending with petrol to ease the fossil fuel crisis caused by the ongoing Gulf conflict.
The seizure of the rice truck follows complaints received alleging ethanol scam in the state, police said.
Four people have so far been arrested in connection with the alleged scam, police said.
