Rice millers under scanner for fake bank guarantees in Asifabad
Rice millers in Kumram Bheem Asifabad district have come under scrutiny for submitting fake bank guarantees in custom rice milling operations. Officials said several millers were misleading authorities to cover defaults, prompting plans for raids and strict action
Kumram Bheem Asifabad: Rice millers from the district have come under the scanner for adopting new ways to mislead Civil Supplies officials over their shady past in taking up the process of custom rice milling (CMR). In the latest trend, a section of millers are submitting fake bank guarantees to cover up defaulted grains under the process.
In 2024, the government issued fresh guidelines instructing millers to provide a guarantee or security deposit for taking up CMR operations with effect from the Kharif marketing season 2024-25. Millers with no previous history of default would merit consideration for CMR allotment with either ten per cent of the value of the paddy in the form of a bank guarantee or 25 per cent as a security deposit on the approved milling capacity.
Previous defaulters who have cleared CMR dues along with penalty will be considered for allotment of paddy against 20 per cent as bank guarantee or 25 per cent as the security deposit. Previous defaulters who have cleared 100 per cent dues with 25 per cent penalty pending must provide 25 per cent as bank guarantee or security deposit towards the pending penalty component, in addition to 25 per cent on the approved milling capacity of the mill.
Officials said that rice millers should hand over 900 metric tonnes of rice to the government with regard to the Rabi marketing season 2023-24. While a section of millers are coming forward to return the grains, a few are misleading officials by giving fake bank guarantees against their defaults to cover up their shady past.
Incidentally, a miller was recently booked for allegedly furnishing a fake guarantee for defaulting 20,000 quintals of rice by submitting a cheque of Rs 7.5 crore issued by a Mumbai-based bank and committing forgery in Sirpur (T) mandal. Officials were shocked after realising that the miller had submitted a fake guarantee when staff of the bank’s local branch confirmed it. The miller was alleged to have swindled 40,000 quintals of rice worth Rs 5.90 crore in 2024.
When asked, officials of the Telangana Civil Supplies Department said they were planning to conduct raids on millers who were showing negligence in executing the CMR process and delaying the handing over of grains to the government. They stated that stern action would be taken against those who mislead officials and indulge in malpractice.