On the 20th and 21st of October 2023, the Directorate of Enforcement (ED) conducted search operations at the premises of the former Managing Director (MD) of MARKFED, as well as the Treasurer and office bearers of the Chhattisgarh Rice Millers Association, District Marketing Officers, and several Rice Millers. This was in connection with the Custom Rice Milling special incentive scam.
The ED’s investigation was initiated based on a complaint filed by the Income Tax Department under various sections of the IT Act, 1961, and IPC, 1860. The complaint alleged that the office bearers of the Chhattisgarh State Rice Millers Association, in collusion with officers of Chhattisgarh State Marketing Federation Ltd (MARKFED), conspired to misuse the special incentive, resulting in the illicit earning of crores in bribe kickbacks.
Until the Kharif year 2021-22, the government of Chhattisgarh provided a special incentive of Rs. 40/- per quintal of paddy to rice millers for custom milling. Subsequently, this incentive was significantly increased to Rs. 120/- per quintal, paid in two instalments of Rs. 60/- each. The office bearers, led by Treasurer Roshan Chandrakar, in collaboration with Manoj Soni, MD of MARKFED, allegedly collected kickbacks of Rs. 20/- per instalment for each quintal of paddy milled from rice millers.
The district rice millers association sent details of those who paid cash amounts to the concerned District Marketing Officer (DMO). The DMOs cross-checked the bills received with the information from the rice millers association, and only the bills of those who paid cash were cleared by the MD of MARKFED for payment.
The ED’s investigation uncovered that after the increase in the special allowance from Rs. 40 to Rs. 120 per quintal, payments totalling Rs. 500 Crore were released, resulting in kickbacks of Rs. 175 Crore. These kickbacks were allegedly collected by Roshan Chandrakar with the active assistance of MD MARKFED, for the benefit of ‘higher powers.’ The search operations yielded various incriminating documents, digital devices, and unaccounted cash amounting to Rs. 1.06 Crore. Further investigation is currently underway.
