Khammam CMR diversion scam: Rice mill owner arrested over alleged Rs 1.23 crore fraud

A joint inspection by Vigilance and Civil Supplies officials uncovered an alleged custom-milled rice diversion scam in Khammam's Nelakondapalli mandal. Officials detected a shortage of 442.720 metric tonnes of stock worth about Rs 1.23 crore, leading to the rice mill owner's arrest.

Khammam: A major scam involving the diversion of custom milled rice (CMR) has come to light lately in Nelakondapalli mandal in the district.

This irregularity was uncovered during joint inspections conducted by the Warangal Regional Vigilance and Enforcement (RV&E) wing and Civil Supplies Department officials. According to officials, a surprise inspection was carried out on July 22 at Sri Arunachala Shiva Rice, Food and Industries located in Rajeshwarapuram village in the mandal.

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During the inspection of the mill’s records and stock, officials identified a massive discrepancy in the government CMR holdings. They confirmed a shortage of 442.720 metric tonnes of paddy compared to the stock that should have been present according to the records.

Officials estimated the market value of the diverted CMR, which was not accounted for in the records, to be approximately Rs 1.23 crore. A criminal case has been registered against the rice mill owner, Oruganti Kiran based on the complaint by civil supplies officials.

Kiran was arrested, produced before a court and the judge ordered him to be remanded to judicial custody.