KTR alleges massive fraud: Congress pocketed Rs 1,100 crores in paddy purchase

Hyderabad: Bharat Rashtra Samithi (BRS) working president KT Rama Rao on Sunday alleged that the Telangana Congress government was complicit in a scandal of Rs 1,100 crores, involving the sale of paddy and purchase of fine rice by the civil supplies department.

Speaking to the media at Telangana Bhavan here, KTR demanded a detailed inquiry by the central agencies like the Enforcement Directorate (ED), Central Bureau of Investigation (CBI) and the Vigilance Department.

He alleged that prominent Congress leaders from Delhi and the Chief Minister’s Office were involved in a large-scale scandal that was being concealed by Congress leaders accepting bribes from persons in various sectors.

KTR demands probe by a sitting judge

“Despite the controversy being made public by BRS around a fortnight ago, why didn’t chief minister A Revanth Reddy or the minister of Civil Supplies N Uttam Kumar Reddy respond to the revelation? To demonstrate his integrity, Revanth Reddy needs to direct a sitting judge to conduct a thorough investigation into these tenders. We will take legal action and reveal their connection to the public if the Centre, FCI, and State governments do not reply,” KTR said.

Informing the scam details, the BRS working president claimed that in the first scam, international tenders for the sale of 35 lakh tons of paddy were used, and in the second, 2.2 lakh tonnes of fine rice were bought for residential welfare hostels.

The combined value of both scandals was Rs 1,100 crore, he said.

‘Under the pretext of global tenders’

Explaining the chronology of the allegations, KTR said on January 25, guidelines were published and tenders were invited, which suggested corruption. A committee was also constituted on the same day, he added.

“A conspiracy under the pretext of global tenders was started, although the local rice millers offered to purchase paddy for Rs 2,100 a quintal. The eligibility requirements were altered as a result,” KTR said.

All these tenders were won by firms such as Kendriya Bhandar, LG Industries, Hindustan Company, and Naqaf, who quoted rates per quintal ranging from Rs 1,885 to Rs 2,007, which was between Rs 93 and Rs 200 less than the local market.

‘Businesses extorting rice millers’

The BRS working president accused these businesses of extorting money from rice millers, claiming that they were paying for various expenses such as payments to Delhi leaders and the election expenses of the Congress party, and demanded Rs 2,230 per quintal. The Vigilance and Civil Supply agencies are threatening to perform raids if the millers do not pay the predetermined amount, he added.

KTR further disclosed that an extra tax of Rs 200 per 35 lakh tonnes was levied against millers to collect Rs 700 crore from them.

“What is this business’s legitimacy and right to extort money from millers? All these companies will lose an additional Rs 150 crores every month in interest if they were permitted to purchase paddy after the May 23 deadline,” he said. Additionally, KTR also exposed a Rs 300 crore scam involving the procurement of 2.2 lakh tonnes of excellent rice intended for underprivileged students enrolled in various welfare hostels.

The BRS working president also attacked the Congress government for purchasing rice at a rate of Rs 57 kg when, as was the case under the previous BRS administration, it could have been obtained locally from the millers for Rs 35 kg.

These scams totalled Rs 1,100 crore, and Revanth Reddy and high-ranking officials from Hyderabad to Delhi are suspected of being involved. “I believe that the personnel of the Food Corporation of India (FCI), Central investigation agencies, and the Central government had failed to discover such a massive scam,” he added.