Vigilance raids on rice mills uncover ₹60 crore irregularities across Telangana

Hyderabad: The Vigilance and Enforcement Department Telangana uncovered large-scale irregularities worth over ₹60 crore during statewide raids on rice mills. Officials conducted the inspections on January 12, 2026, to prevent the diversion of government rice.

As part of a special enforcement drive, vigilance teams carried out surprise checks at 19 rice mills across nine districts. During the inspections, officials detected diversion, shortages, and misuse of Custom Milled Rice (CMR) meant for the public distribution system.

Meanwhile, eight vigilance teams from Warangal, Karimnagar, Hyderabad Rural, Hyderabad City-I, Hyderabad City-II, Nalgonda, and R.C. Puram took part in the operation. They covered mills in Mahabubabad, Peddapalli, Rangareddy, Vikarabad, Narayanpet, Suryapet, Nalgonda, Kamareddy, and Nizamabad districts.

According to officials, the teams found diversion of over 1.90 lakh quintals of rice and 1.72 lakh bags. As a result, the government suffered losses exceeding ₹60 crore.

Vigilance raids rice mills reveal CMR diversion and closures

During the drive, the department detected serious violations in 14 rice mills. These included diversion and shortages of CMR stocks. In addition, officials issued notices to five other mills for poor record maintenance and placed them under surveillance.

In a major action, officials closed Janakiram Industries at Poosala village in Peddapalli after confirming violations. District-wise findings showed shortages worth ₹19.73 crore in Kamareddy and Nizamabad. Officials also detected diversion worth ₹19.32 crore in Suryapet and missing stocks worth ₹15.91 crore in Narayanpet. Further, inspections revealed shortages worth ₹11.38 crore in Peddapalli, diversion worth ₹4.86 crore in Mahabubabad, and CMR diversion worth ₹0.88 crore in Rangareddy.

Subsequently, officials began registering criminal cases against erring millers. They also instructed the Civil Supplies Department Telangana to recover losses, cancel licences, and blocklist those involved in illegal activities. Moreover, the Vigilance Department said it will continue regular inspections to ensure foodgrains reach PDS beneficiaries without diversion.

Finally, the department urged the public to report illegal activities. Citizens can share information through the toll-free number 14432.