ED alleged Bribery Scam of Rs.175 Crore in poll-bound Chhattisgarh

The Directorate of Enforcement (ED) conducted search operations on the premises of the ex-MD of MARKFED, Treasurer and Office Bearers of Chhattisgarh Rice Millers Association, District Marketing Officers, and a few Rice Millers in the Custom Rice Milling special incentive scam on October 20th and 21st, 2023.

The investigation was launched on the basis of a complaint filed by the Income Tax Department before the Hon’ble of CJM, Raipur under various sections of the IT Act, 1961 and the IPC, 1860, alleging that the officer bearers of the Chhattisgarh State Rice Millers Association conspired with officers of the Chhattisgarh State Marketing Federation Ltd (MARKFED) to misuse the special incentive and earn crores in bribe kickbacks.

The Government of Chhattisgarh paid a special incentive of Rs. 40 per quintal of paddy to rice millers for custom milling of paddy until Kharif year 2021-22, when it was exorbitantly increased to Rs. 120 per quintal of paddy, which was paid in two instalments of Rs. 60 each.

Under the leadership of its Treasurer, Roshan Chandrakar, the office bearers of the Chhattisgarh State Rice Millers Association began collecting bribes of Rs. 20 per instalment from rice millers in collusion with Manoj Soni, MD, MARKFED.

The district rice millers association forwarded the names of rice millers who had paid the cash amounts to the District Marketing Officer (DMO).When the DMOs received the rice millers’ bills, they cross-checked them with the information acquired from the relevant district rice millers’ organisation; this information was subsequently forwarded to MARKFED’s headquarters. Only the bills of rice millers who paid cash to the association were cleared for payment by MD, MARKFED.

ED investigation revealed that after the increase in the special allowance from Rs. 40 to Rs. 120 quintal, payments were released worth Rs. 500 Crore, generating kickbacks of Rs. 175 Crore which were collected by Roshan Chandrakar with active assistance of MD MARKFED, for the benefit of ‘higher powers’.

During the search operations various incriminating documents, digital devices and unaccounted cash of Rs. 1.06 Crore were found and seized.

Further investigation is under progress.