The Telangana Police Crime Investigation Department (CID) has registered three criminal cases and arrested 14 rice millers in connection with alleged irregularities in the delivery of Sanna Rakam rice to the Food Corporation of India (FCI) during the Kharif 2025–26 season.
According to the CID, the investigation began following a complaint lodged by the General Manager (Procurement) of the Telangana Civil Supplies Corporation on October 24, 2026.
Alleged Substitution of Rice Varieties
The Telangana government procured 71.86 lakh metric tonnes of paddy during the Kharif 2025–26 season, against a target of 59.60 lakh metric tonnes of rice for delivery to the FCI.
Preliminary findings reportedly indicate that certain rice millers allegedly diverted the allotted Sanna Rakam paddy to the open market and supplied cheaper coarse rice, known as Doddu Rakam, in its place.
Inspections conducted by Enforcement and Task Force (ETF) teams, followed by laboratory testing, reportedly found that samples supplied in the cases examined did not match the Sanna Rakam variety specified in the allotments.
₹1.69 Crore Estimated Loss in Identified Deliveries
According to the CID information, 16 rice mills in Nizamabad, Karimnagar and Mulugu districts reportedly delivered 3,385.820 metric tonnes of Doddu Rakam rice against Sanna Rakam allotments.
The estimated loss linked to the bonus payments for these deliveries is approximately ₹1.69 crore.
Potential Financial Implications of ₹242 Crore
A further quantity of 45,414.833 metric tonnes of paddy had reportedly been allocated for conversion. The potential bonus-related financial implication was estimated at approximately ₹242 crore.
According to the information provided, timely intervention by Civil Supplies authorities and orders stopping further processing prevented additional potential losses.
The alleged irregularities raise questions about compliance with the Custom Milled Rice (CMR) agreement and the possibility of financial loss to the state government.
Investigation Underway
The CID is investigating the alleged diversion of paddy, substitution of rice varieties and the role of the concerned millers. Investigators are also examining how allotments and conversion requests were processed, whether any officials or other individuals were involved, and whether there was a criminal conspiracy.
The department is collecting documentary, technical and other supporting evidence to establish the facts and determine the actual financial loss, if any.
The allegations include suspected violations of the Kharif Marketing Season (KMS) 2025–26 CMR agreement, criminal breach of trust and conspiracy to cause wrongful loss to the government exchequer.
The investigation is ongoing, and the allegations against the accused remain subject to the findings of the investigation and due legal process.
