PDS Rice Diversion Racket Busted, 15 Accused Booked in Major Crackdown
A major PDS rice diversion racket was busted at Palvancha MLS Point in Bhadradri Kothagudem, where officials uncovered 300 quintals of diverted rice worth ₹17.22 lakh. A total of 15 accused—including contractors, millers, officials, and fair price shop dealers—have been booked.
A massive PDS rice diversion racket involving 300 quintals of essential commodity rice worth ₹17.22 lakh has been busted by the Telangana Vigilance Task Force at the Palvancha Mandal Level Stock (MLS) Point in Bhadradri Kothagudem.
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A case has been registered under the relevant sections of the BNS and the Essential Commodities Act.
GPS Tampering Used to Divert Rice to Black Market
Officials began investigating after receiving credible information.
A Bajaj Pulsar (AP 20 AV 1899) carrying falsified truck chits raised suspicion. Further inquiry revealed that a lorry (TS 29 T 5139) carrying 600 PDS rice bags was illegally diverted to the black market.
The gang allegedly removed the GPS tracker from the lorry and installed it on the motorcycle to fool the monitoring system into thinking the truck was moving on its assigned route.
The lorry was later traced near Nakiripeta, confirming deliberate diversion.
Role of Key Accused and Confessions
During questioning, Prasanth (A2)—assistant to Stage-I contractor N. Srinivas (A1)—confessed to involvement in the diversion.
The driver-owner Anil Kumar (A5) admitted he parked the lorry under instructions from Narahari (A14), owner of Ramya Trader Rice Mills.
Meanwhile, MLS Point Incharge Satyavathi (A3) admitted to receiving ₹20,000 per diverted lorry, and D.E.O. Krishna Kumar (A4) confessed he was paid ₹10,000 per trip.
Conspiracy Extended Across Contractors, Officials & Dealers
The investigation revealed a wide network of collusion involving:
- Stage-I contractors
- Millers
- MLS officials
- D.E.O. staff
- Hamali workers
- And eight fair price shop dealers (A6–A13)
Hamali Nagaraju (A15) allegedly assisted in the illegal loading and movement of the diverted stock.
Police described the operation as a “widespread and systematic conspiracy” meant to siphon off government-supplied essential commodities meant for poor beneficiaries.
More Arrests Likely as Investigation Deepens
Authorities indicated that the racket might have connections beyond the listed accused, and further arrests are likely.
The Telangana Vigilance Task Force continues to probe the financial trail, involvement of additional millers, and repeated diversion patterns from the MLS point.
