EXPLAINER:Why the Karnal administration has set up nakas on Haryana-UP border

The Karnal district administration has set up two nakas on the Haryana-UP border to crack down on a long-standing procurement fraud involving illegal paddy and Public Distribution System rice inflow, fake gate passes and collusion between traders and officials. Here is what you need to know about all facts behind this step.

What prompted the Karnal administration to set up nakas?

The Karnal district administration established two nakas at Manglora and Shergarh Tapu villages to check the arrival of paddy and PDS rice from neighbouring states such as Uttar Pradesh and Bihar. The input to the district administration revealed that some traders were quietly bringing in cheaper paddy and PDS rice into Karnal’s grain markets and rice mills, causing large-scale irregularities in the procurement process.

What is the main concern behind the illegal influx?

The concern is that the PDS rice and low-cost paddy from other states are being purchased at cheaper rates and then adjusted against the custom-milled rice (CMR) to return to Food Corporation of India by using fake gate passes and bogus procurement. This practice not only cheats the government but also distorts the fair procurement process, causing losses to the state exchequer.

Who is supervising the nakas and how are these monitored?

Duty magistrates and police teams have been deployed for round-the-clock surveillance. The administration is also installing CCTV cameras at the checkpoints to ensure continuous monitoring and prevent illegal movement of paddy and rice. Karnal Deputy Commissioner Uttam Singh has assigned Karnal SDM Anubhav Mehta to monitor nakas.

 What instructions have been given to other officials?

SDMs of Indri, Gharaunda, Assandh, and Nilokheri have been instructed to keep a strict vigil in all grain markets and rice mills within their areas. Market committee secretaries have been told not to allow the entry of paddy without valid gate passes or consignments originating from outside Haryana. Strict action would be taken against any officer found negligent.

Why is the issue recurring?

Every year, the arrival of PDS rice and paddy from outside Haryana keeps the administration on alert. Despite repeated crackdowns, fake gate passes, multiple gate passes and deleted entries continue to surface. The traders exploit loopholes and price differences between states, making huge profits while bypassing procurement rules.

What were the irregularities reported last year ?

The 2024–25 procurement season was marred by serious irregularities, including fake and multiple gate passes were issued in several grain markets, nearly 98,000 gate pass entries were deleted, with Nissing grain market recording the highest deletions (772 passes of 42,633 quintals), unsold paddy was shown on the portal even after the season ended, despite no physical stock in markets. Besides, trucks loaded with paddy from Bihar were caught, and missing paddy was reported in some rice mills. These findings exposed deep gaps and possible collusion between traders and officials in the procurement process.

What steps has the administration taken?

After these findings in 2024-25 paddy procurement, DC Uttam Singh had ordered then Additional Deputy Commissioner (ADC) Yash Jaluka and then Assistant Commissioner Under Training (ACUT) Yogesh Saini, to carry out a detailed inquiry. They jointly investigated the irregularities, verified physical stocks, and checked gate pass records. Their report highlighted “foul play” in procurement, which was sent to the higher authorities. Though, the sources claim that no major action had been taken as yet.

What is the suspected modus operandi of traders, millers?

As per the insiders, the traders purchase low-quality paddy or PDS rice from Uttar Pradesh, Bihar and other states at cheaper rates. Illegal diversion of PDS rice and paddy from other states is a multi-pronged operation by which the millers fraudulently adjust their custom-milled rice (CMR) delivery to government agencies. This is achieved through a nexus of officials, fake documentation and exploiting loopholes in the procurement system. Bogus gate passes are created to present the illegally sourced paddy to locally purchased, helping to cover their tracks during inspections. Fake farmer IDs are used and manipulated per-acre yield data on procurement portals to show false purchases of paddy. Besides, some corrupt officials assist blacklisted millers in continuing their operations by allocating them large quantities of paddy. Through this manipulation, the traders earn a profit margin of Rs 400–Rs 600 per quintal, even after covering transportation costs. This fraudulent practice results in financial losses to the government.

Who are the key officials suspected of involvement?

Sources allege a nexus between arhtiyas, rice millers and officials of the Haryana State Agricultural Marketing Board (HSAMB) and procurement agencies. Despite several inquiries in previous years, no major convictions have been reported, raising doubts about accountability and the depth of the collusion.

What do experts say?

Experts have stressed the need for a transparent and technology-based system. They suggest OTP verification for gate pass issuance, printed slips of showing actual weight and rate to be given to farmers.

What does this mean for the future of paddy procurement?

Setting up nakas is seen as a preventive measure. However, unless systemic loopholes, data manipulation, and corruption in gate pass issuance are addressed through strict accountability and digital transparency, the problem is likely to resurface every season.