Rice scam: Rs 2.02 cr, gold worth Rs 1.12 cr seized

The Directorate of Enforcement (ED) here seized Rs 2.02 crore in cash and bullion worth Rs 1.12 crore during search operations conducted regarding a fraud committed under “Bharat Rice Scheme”.

The ED officials had conducted search operations at various residential and business premises located in Haryana and Punjab on Friday under the provision of the Prevention of Money Laundering Act (PMLA).

The Central agency has been conducting investigations related to the fraud committed by various persons/entities in the distribution and sale of rice to poor people.

The ED initiated investigation of the basis of an FIR registered by the Vigilance Bureau against Gopal Goyal, owner of Shiv Shakti Rice Mill, Garhshankar in Hoshiarpur, Jai Jinender Rice Mill, Bathinda, Harish Kumar Bansal, a broker, and others in July last year. The scam amounted to Rs 1.55 crore and the VB had seized two trucks laden with 1,138 bags of rice.

During probe, it was found that the persons involved obtained rice from designated government agencies at a lower price for further providing it to poor people at affordable price. They were required to process, clean and pack the same in bags before supplying it to the common people. It was revealed that the accused and related entities, instead of selling the rice to the public through prescribed modes of, diverted it to other rice millers or sold it through other modes.