Illegal PDS rice diversion continues amid crackdown in Hyderabad

Despite intensified enforcement by the Civil Supplies Department, PDS rice smuggling syndicates allegedly continue operating across Hyderabad with political patronage and official support, sources claim. Authorities fear the organised network could expand into other forms of organised crime if left unchecked.

Hyderabad: Even as the Civil Supplies Department has intensified its crackdown on the illegal diversion of rice supplied under the Public Distribution System (PDS), commonly known as PDS rice, smuggling syndicates are allegedly continuing their operations by “managing” officials.

Sources familiar with the illegal trade claim the syndicates have built a strong network of political patronage and official support, allowing the business to flourish despite repeated enforcement drives.

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“A close nexus between sections of the police, local political leaders and the PDS rice mafia has helped sustain the illegal trade across the city,” a reliable source said.

A police inspector recently came under scrutiny after a photograph showing him with a PDS rice smuggler from Kishanbagh surfaced on social media, prompting an internal inquiry by the Telangana Police. It is believed that the inspector had invited the alleged smuggler to a function at his residence and allegedly received favours from him.

Allegations have also surfaced from Chandrayangutta, where a local leader is said to be collecting protection money from smugglers and facilitating their operations by managing law enforcement officials. Similar claims have emerged from Vattepally, where a known smuggler allegedly influences local police with the help of a full-time peharwikar based in Teegalkunta. Sources say the situation is similar in Balapur and Bhavaninagar.

According to persons familiar with the trade, PDS rice is procured in two ways. Fair price shop dealers allegedly pay beneficiaries for their quota and retain the rice, which is later collected by the smugglers’ men. In the second method, youngsters working for the syndicates purchase rice directly from beneficiaries in slum localities and sell it to the smugglers.

Authorities estimate that major PDS rice smuggling syndicates operate from Balapur, Bahadurpura, Rajendranagar, Falaknuma, Chaderghat, Pahadishareef, Tallabkatta and Bhavaninagar. Similar activity is reported from Nagole, Ghatkesar and Meerpet, where several slums are located.

Sources said the syndicates rent houses and small shops in slum areas as temporary godowns before shifting the collected rice to larger warehouses on the city’s outskirts for transportation to other States.

The consignments are usually moved during late-night hours. Each truck carries nearly 14 tonnes of rice, generating estimated profits of between Rs 1.30 lakh and Rs 1.50 lakh per trip.

It is learnt that the syndicates recruit youngsters by paying them around Rs 500 a day and providing scooters to collect PDS rice from beneficiaries.

Officials fear the organised network of youngsters engaged in PDS rice smuggling could eventually be exploited for drug trafficking and other organised criminal activities if the alleged nexus between smugglers, political patrons and corrupt officials is not dismantled.