Hyderabad: A major PDS rice scam surfaced after a raid at the Palvanch MLS Point revealed coordinated efforts to divert government rice into illegal markets. Vigilance officers, acting on credible intelligence, intercepted a motorcycle carrying falsified chits, leading them to unravel an extensive diversion network.
Fraudulent chits and GPS trickery reveal scale of PDS rice scam
During the operation, authorities identified a lorry transporting 600 bags of PDS rice valued at ₹17,22,600. Officials discovered that the GPS tracker assigned to the lorry had been intentionally placed on a motorcycle to mislead surveillance. Prasanth, the motorcycle rider, confessed to assisting contractor N. Srinivas in the diversion scheme.
The lorry was found near Nakiripeta, and driver Anil Kumar admitted halting on instructions from rice mill owner Narahari. Investigators learned that MLS Point staff, including Incharge Satyavathi and D.E.O. Krishna Kumar, received payments per diverted load. Fair price shop dealers also acknowledged their role, citing profits per kilogram of diverted rice.
Prasanth confirmed he earned ₹10,000 for each lorry, while false entries and fabricated receipts supported the scheme. Contractor Srinivas admitted to diverting five lorry loads in the past. The network’s activities resulted in substantial illegal gains and losses to the government distribution system.
