Shocking ?1,100 crore rice diversion scam under the guise of ethanol plants; SIT arrests eight individuals

Balaghat (M.P.), July 22: The Special Investigation Team (SIT) has accelerated its action regarding the alleged diversion of government-supplied fortified rice meant for ethanol plants in Madhya Pradesh. Among those arrested are three rice mill owners and a manager, including Kishanlal Khandelwal and Jugal Khandelwal from Gondia, Maharashtra.

The SIT is now preparing to seek remand for all the accused. Additionally, six other individuals have been detained and are currently being interrogated. Following this operation, the total number of arrests in the case has reached eight, while four accused remain at large.

Potential ?1,100 Crore Rice Diversion Scam

SIT investigations have revealed that fortified rice worth approximately ?1,100 crore may have been diverted through 22 ethanol plants across 17 districts of the state. The scam came to light on June 3 after a truck loaded with 242 quintals of government rice was intercepted in Balaghat.

Modus Operandi of the Alleged Scam

Under the state government's policy, old and unfit-for-consumption rice from FCI warehouses was to be used for ethanol production. Fortified rice was also supplied under this scheme. Ethanol plant operators were provided this rice at a rate of ?2,320 per quintal. However, instead of producing ethanol, some operators sold the rice to rice mills at ?2,800 per quintal. This yielded a profit of approximately ?480 per quintal for the rice mill owners. Subsequently, the same rice would be repackaged and returned to the government.

Who Has Been Arrested? The SIT has arrested Bihari Patle (Director of Bihari Rice Mill, Naitara) and his manager, Surendra (Director of Shanti Rice Mill), and Gaurav Maheshwari (Director of Viraj Rice Mill, Garra). Additionally, Kishanlal Khandelwal and Jugal Khandelwal from Gondia (Maharashtra) have also been arrested.

**Questioning of the Sancheti family and a BJP leader's relative**

The SIT has detained a member of the Sancheti family, whose rice mill is at the center of the case. According to sources, Rajesh Sancheti—brother of Gambhir Sancheti—could also be arrested soon. Gambhir Sancheti and his son, Saurabh Sancheti, remain absconding. Furthermore, the nephew of a BJP leader has been detained and is currently being questioned.

**Seizure of key documents; raids in Maharashtra and Chhattisgarh**

The SIT has seized important documents from the arrested rice mill owners. SIT teams are conducting continuous raids across Maharashtra and Chhattisgarh in search of the absconding accused.

The SIT's investigation into this matter is proceeding rapidly, and further significant actions are likely to follow.