₹150 Crore Paddy Procurement Scam Rocks Madhya Pradesh; Massive Fraud Unearthed in Rice Milling
Madhya Pradesh Government orders high-level probe after 60,000 quintals of paddy misappropriation exposed across eight districts.
Pramod
FACT FILE: MP Paddy Procurement Scam
| Parameter | Details |
|---|---|
| Estimated Scam Amount | ₹150 Crore+ |
| Quantity of Paddy Misappropriated | 60,000 Quintals |
| Districts Involved | 8 (Balaghat, Satna, Sidhi, Maihar, Dindori, Sagar, Panna, Seoni) |
| FIRs Registered | 38 against Procurement Committees |
| Individuals Named Accused | 145 |
| States from where cheap paddy was purchased | Haryana, Punjab, Maharashtra, Bihar, UP, Telangana, Odisha |
| Seized Quantity of Rice | 2,297 Quintals (from Seoni’s Shakuntala Devi Rice Mill) |
| Previous Scam (2019) | 73,540 Tonnes of sub-standard rice worth ₹300 Crore |
Highlights of the Paddy Scam Probe
The Madhya Pradesh government has launched a full-scale investigation into a massive paddy procurement scam that has rocked the state’s food and civil supplies department. Economic Offences Wing (EOW) investigations have uncovered that over 60,000 quintals of paddy were misappropriated, leading to losses exceeding ₹150 crore.
The state’s Food Minister Govind Singh Rajput has instructed district collectors to submit detailed inquiry reports within seven days. A high-level committee headed by collectors in all affected districts has been constituted to scrutinize procurement centre records, paddy verification reports, and transport data.
How the Scam Unfolded
The probe revealed that several rice millers and procurement committees had purchased cheap paddy from seven other states and fraudulently claimed milling charges and government subsidies. In Seoni district, officials seized 2,297 quintals of rice prepared from these low-cost grains. Bags seized from mills were branded with state markings of Haryana, Punjab, Bihar, Maharashtra, and others — clear evidence of deception.
The EOW has already filed FIRs against 38 procurement committees, naming 145 individuals as accused. There are strong suspicions that senior officials of the Cooperation Department, Civil Supplies Corporation, and Warehousing Corporation colluded with millers to facilitate the scam.
Minister’s Strong Directions
- Verification of paddy stocks at procurement centres and warehouses.
- Recovery of losses from responsible procurement committees and transporters.
- Ban on issuing new delivery orders to rice mills under investigation.
- Cross-verification of paddy transport vehicle data from toll plazas and district transport offices.
- Immediate legal action against those found guilty.
History Repeats: Not the First Paddy Scam in MP
Shockingly, this isn’t the first time Madhya Pradesh has been hit by such a scam. In 2019, a similar ₹300 crore chawal (rice) scam surfaced when over 73,000 tonnes of poultry-grade rice were discovered in government warehouses across 22 districts. That scam too was buried without fixing accountability.
The current investigation raises serious questions over the systemic rot and possible political-bureaucratic nexus that has enabled such frauds to thrive unchecked for years.
