Hyderabad: PDS rice mafia engage in gang wars

Attacks, and murders are on the rise as gangs vie for supremacy in the multi-crore business

Hyderabad: With the police focusing on drugs, the mafia engaged in the smuggling of rice meant to be dispensed under the public distribution scheme (PDS) to Below Poverty Line (BPL) families is fast spreading its tentacles. Thanks to the huge profits involved in the illicit trade the gangs are not hesitating to turn ruthless.

The multi-crore business attracted unsocial elements to unite and form into organised gangs who have now developed the striking capability to collect, stock, transport, and market tonnes of rice to their clients in Telangana and neighbouring States of Karnataka, Maharashtra or Andhra Pradesh.

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The height of the gang rivalries and wars over smuggling reached such a level in the city that a man was attacked and murdered at Santoshnagar in December. The victim Tariq, who was a local functionary of a political party attempted to settle a dispute between two gangs over the smuggling of PDS rice and instead ended up as a victim, according to the police.

In other incidents, Arshad Hussain of Cherlapally was killed by one Mohd Mahboob Hussain at Patancheruu in 2018 over the PDS rice smuggling dispute. In the following year, the relatives of Arshad with the help of hired killers allegedly eliminated Hussain at Rudraram in Patancheruu to take revenge for the killing.

According to informed sources, PDS rice smuggling is turning into a multi-crore business. The organised gangs have at least four layers; the field group collects the rice from ration shops or the local beneficiaries for Rs 12 a kilogram, the second group stocks it at warehouses, the third deals with the buyers, and the other group transports it. “A huge amount of ‘mamool’ is paid to local leaders, YouTubers, local police, and civil supplies officials. After calculating all the expenses the rice is sold in other States in bulk for a price of Rs 28 to Rs 30. Some millers are also purchasing it in bulk,” said S A Raheem, a social worker adding that it was causing a huge loss to the State exchequer.

The high profits in the trade saw the gangs investing in purchasing old scooters and auto rickshaws for transporting the rice from the doorstep of beneficiaries. Also, a few gangs hired transport auto rickshaws and DCMs to smuggle the rice to their customers.