Congress Govt’s Rs 1,100 Cr paddy scam: KTR wants ED, CBI, judicial inquiry

HYDERABAD: Bharat Rashtra Samithi (BRS) working president KT Rama Rao (KTR) demanded an inquiry by a sitting judge, the Enforcement Directorate, and the CBI into the Rs 1,100 crore paddy scam in Telangana.

Addressing media at the Telangana Bhavan on Sunday, KTR demanded a white paper on the two scams allegedly organised by the Congress Government.

He also wanted the Food Corporation of India to take cognisance of the offense by the Telangana Civil Supplies Corporation with the active participation of Chief Minister A Revanth Reddy and Minister of Civil Supplies N Uttam Kumar Reddy.

"Our party brought out the scam within 15 days, but the Congress Government has not responded. BRS means schemes, and Congress means scams. Congress policy is to loot in the streets and share in Delhi. Congress is a party of scams,” KTR noted.

He said that the Congress Government instead of focusing on paddy procurement, opened up a new avenue for money laundering. “ The state already has a B, U, and RR tax. Now you have the involvement of the Chief Minister's office as well as the elders of Delhi in this paddy scam,” KTR pointed out.

KTR said that the first scam worth Rs 750 crore was in the name of global tenders to lift 35 lakh MT in 90 days. “Tenders and guidelines were announced on January 25, 2024, while rice millers are ready to buy at Rs 2,100 per quintal. Four companies LG Industries, Hindustan Unilever, and NACOF including blacklisted Kendriya Bhandar were given the tender. Congress relaxed rules for it and the deal was to lift paddy at Rs 1,885- Rs 2,007 per quintal,” KTR said.

KTR alleged that the four companies were involved in money laundering by demanding extra payment of Rs 223 per quintal by blackmailing the rice millers that they would instigate vigilance and GST raids. “We were told by rice milers that they promised not to lift the paddy but issue a certificate that the paddy was lifted. Imagine Rs 223 per quintal for 35 lakh tons, the scam is Rs 700 crore,” KTR said.

Alleging that the four companies have not paid the amounts or lifted the paddy within 90 days as per the agreement. He demanded a white paper on the quantity lifted so far. “Why Kendriya Bhandar was allowed to participate and a case under money laundering must be registered,” KTR said.

Coming to the second part of the scam he said that the 2,20,000 MT fine rice scam was worth Rs 300 crore. “The total of both the scams comes to around Rs 1,100 crore. For the mid-day meal scheme a Global tender was called, but the same four companies participated. While fine rice varieties are available in the open market for Rs 45 the Telangana Government offered Rs 57 to Rs 56.90 per kilo. Rs 15 extra per kilo meant that the scam is Rs 300 crore,” KTR pointed out.

He said that the Government opted for global tenders while there was 1.6 lakh tons of fine rice available with the Civil Supplies Department and all the Government needed was only 60,000 MT.

“The share has been sent to the Delhi AICC elders. Therefore, the rice millers are being forced to pay an additional amount of at least Rs 150 per quintal. If the deadline is extended, the Civil Supplies Corporation will incur an interest loss of Rs 150 crore every month.

The government should tell the people of the state how much paddy has been lifted in that company so far in a white paper,” he said.

Suspecting the hand of Chief Minister Revanth Reddy and the Central Government, KTR said nothing could happen in the Government without the permission of the Chief Minister. “Several people from Hyderabad to Delhi are suspected to be involved in the scam. The BJP's role in this entire scam is also suspicious and strange. Procurement of paddy, implementation of Minimum Support Price, and procurement of rice in the state is done under the Food Corporation of India,” he pointed out.

He said that the Central Government had not yet responded to the allegations of corruption made by the leader of the BJP's legislative party. “The role of the Central Government of Delhi is also suspected in this matter,” the former Minister said.