The CBI has registered an FIR over alleged irregularities in the allocation of subsidised rice by the Food Corporation of India (FCI) to the North Eastern Regional Agricultural Marketing Corporation (NERAMAC), alleging that grain intended for poor labourers and other vulnerable consumers was diverted to private traders for profit.
The agency has named senior officials of the FCI and NERAMAC in the case and alleged a series of irregularities, including allocation of rice in violation of policy, pressure on officials, diversion of stocks to traders and preparation of purportedly false records to show that the grain had reached the intended beneficiaries. According to the FIR, the alleged irregularities resulted in a loss of about Rs 28.49 crore to the FCI and corresponding wrongful gains to those involved.
Request for subsidised rice
The CBI alleged that NERAMAC's additional general manager in Guwahati, through a letter dated January 7, sought allocation of 31,000 metric tonnes of rice per week under the "Sale of Rice without participation in e-auction" category of the Open Market Sale Scheme (Domestic) 2025-26.
The stated objective was to make affordable rice available to the general public, daily-wage earners, labourers, migrant workers living in Delhi and people outside the Public Distribution System because they did not possess ration cards.
The investigation, however, alleges that NERAMAC subsequently entered into memoranda of understanding with three private entities and facilitated the lifting of rice by traders.
The CBI said the NERAMAC managing director, through three separate MoUs dated March 26, empanelled three entities as channel partners for distributing agricultural products to consumers and non-governmental entities, including private retailers, wholesalers and NGOs.
According to the FIR, the purpose stated in these MoUs differed from that cited in NERAMAC's original proposal. The agency further alleged that NERAMAC officials falsely stated in the agreements that the corporation was authorised to procure and distribute rice under the OMSS(D) policy, although no such authorisation had been granted by the FCI.
62,000 MT allocated
Acting on a report submitted by the Department of Food and Public Distribution, the CBI registered the case alleging that FCI Delhi allocated around 62,000 metric tonnes of rice to NERAMAC between April 13 and May 15 under the Open Market Sale Scheme (Domestic).
The agency alleged that NERAMAC was not eligible under the 2025-26 policy to receive rice at a concessional rate without participating in an e-auction.
According to the FIR, only state governments and corporations owned by state governments were eligible for allocation without an e-auction. NERAMAC, being a Government of India-owned enterprise, did not qualify under this category, the agency alleged.
The rice was supplied to NERAMAC at Rs 23,200 per metric tonne against the prevailing reserve price of Rs 26,900 per metric tonne. The CBI alleged that the difference caused a loss of approximately Rs 28.49 crore to the FCI.
Traders allegedly profited
The agency alleged that NERAMAC effectively became an intermediary for obtaining subsidised rice ostensibly meant for daily-wage earners, labourers, migrant workers and other eligible consumers in Delhi.
FCI Delhi officials allegedly processed the allocation with "undue haste" despite the apparent violation of the policy governing concessional allocation.
According to the inquiry, private entities contacted traders who deposited Rs 23.25 per kilogram into NERAMAC's bank account. These entities allegedly earned commissions ranging from Rs 0.64 to Rs 2.50 per kg from traders to whom the rice was subsequently sold.
The traders allegedly lifted the grain directly from FCI depots before selling it onwards to other traders for profit.
Records allegedly fabricated
The CBI has also alleged that fabricated distribution records and backdated appointment letters were prepared to create the impression that the subsidised rice had been distributed through retail outlets to the intended beneficiaries.
The FIR alleges a criminal conspiracy involving officials of the FCI and NERAMAC as well as private entities and traders.
According to the agency, the alleged arrangement enabled subsidised foodgrain intended to make rice affordable for vulnerable consumers to enter commercial trading channels, causing wrongful loss to the FCI and corresponding wrongful gain to the accused.