CBI books FCI, NERAMAC officials over alleged diversion of subsidised rice

The CBI has registered an FIR into the alleged irregularities by the Food Corporation of India (FCI) in allocating subsidised rice meant for poor labourers to the North Eastern Regional Agricultural Marketing Corporation (NERAMAC), where it was "diverted" to traders for a profit. 

Naming senior officials of the FCI and NERAMAC, the CBI has alleged a series of irregularities, including allocation in violation of policy, pressure on officials, diversion of rice to traders and preparation of purportedly false records to show distribution to the public, resulting in losses of over Rs 28 crore to the FCI.

The CBI has alleged that the additional general manager, NERAMAC, Guwahati, vide letter dated January 7, had requested the "minister (food and civil supply), Government of NCT Delhi" for allocation of 31,000 MT rice per week under the category "Sale of Rice without participation in e-auction" under the Open Market Sale Scheme (Domestic) 2025-26.

"The objective was to ensure availability of rice at affordable rates to the general public, daily wage earners, the labour class, migrant workers residing in Delhi, and persons not covered under PDS due to non-availability of ration cards," it alleged.

Instead, the inquiry alleges, NERAMAC entered into MoUs with three private entities and subsequently facilitated the lifting of rice by traders.

The agency said the NERAMAC MD, through three separate MoUs dated March 26, had empanelled three entities as channel partners to distribute agricultural products to consumers and non-governmental organisations such as private retailers, wholesalers, NGOs, etc.

"The stated purpose mentioned in these MoUs was different from that mentioned in the proposals sent by NERAMAC on January 7 to the Govt. of NCT, New Delhi. The officials of NERAMAC falsely mentioned in the said MoUs that NERAMAC was authorised to procure and distribute rice under the OMSS(D) policy, though it was not authorised by FCI," the FIR alleged.

Acting on a report submitted by the Department of Food and Public Distribution, the CBI registered a case alleging that FCI Delhi allocated about 62,000 metric tons of rice to NERAMAC between April 13 and May 15, under the Open Market Sale Scheme (Domestic).

The agency alleged that NERAMAC was not eligible to receive rice at a concessional rate without an e-auction under a 2025-26 policy.

"...NERAMAC, being a Government of India-owned enterprise, was not eligible for allocation of rice without e-auction. Only state governments and corporations of state governments were eligible for allocation of rice without e-auction," the FIR alleged.

The rice was supplied to NERAMAC at Rs 23,200 per metric ton, while the prevailing reserve price was Rs 26,900. The inquiry alleges that the concession resulted in a substantial loss to FCI of about Rs 28.49 crore, according to the FIR.

The CBI alleged that NERAMAC was used as an intermediary to obtain subsidised rice ostensibly for distribution among daily-wage earners, labourers, migrant workers and other eligible consumers in Delhi.

The inquiry further alleges that FCI Delhi officials processed the allocation with "undue haste" despite the apparent policy violation.

The private entities allegedly contacted traders who deposited Rs 23.25 per kilogram into NERAMAC's bank account. It is alleged that entities earned commissions ranging from Rs 0.64 to Rs 2.50 per kg from traders to whom they further sold the rice, and the traders allegedly collected rice from FCI depots and resold it to other traders for profits.

The inquiry also alleged that fabricated distribution records and backdated appointment letters were maintained to show that the rice had been distributed through retail outlets to the intended beneficiaries.

The document alleges a criminal conspiracy involving FCI and NERAMAC officials and private traders, saying the alleged acts caused wrongful loss to FCI and corresponding wrongful gain to the accused.