Authorities expand a joint investigation into allegations that subsidised rice, intended for ethanol production, is diverted for other uses. According to reports, officials issue notices to multiple rice mills in Madhya Pradesh and Maharashtra that are suspected of involvement, following discovery of rice that allegedly leaves the intended ethanol supply chain. The investigation is led by a special team (SIT), which focuses on tracing how consignments move through mills, transporters and ethanol plant-related personnel. Investigators aim to determine whether the diversion reflects a larger interstate network rather than isolated cases, and they track transaction and movement records to establish links between locations and stakeholders.
Mint reports that the probe widens amid broader fraud allegations and that four people are arrested in Madhya Pradesh in connection with the alleged diversion of FCI rice earmarked for ethanol. Times of India reports notices to six mills and additional scrutiny of a local political figure’s family unit. Both accounts indicate that investigators are examining compliance and supply chain records to validate whether the rice was diverted and who facilitated the alleged scheme.
