Operation Kanak-2: CBI raids 50 locations in Punjab in connection to multi-crore FCI scam

Premises of several influential grain merchants and arhtiyas (commission agents), including Avtar Singh, Deepak Tay, Naresh Kumar Pradhan, Jaswinder Singh Rana, Vijay Kalra, Harbans Singh Roha, Sadhuram Bhat, Satnam Behru and Harwinder Singh Lakhowal were searched during the operation, officials said.

“Incriminating documents and digital devices have so far been recovered during searches. The operation was launched to break the nexus of channelized corruption in FCI involving officials of the corporation, private rice millers and grain merchants,” a CBI spokesperson said.

This is second round of searches in an FIR — registered in New Delhi on January 10 — pertaining to an organised syndicate of officers at the FCI, who allegedly charged bribes of Rs 1,000-4,000 per truck unloaded at the FCI godowns from private millers per crop season for covering up lower quality grains supplied by them and other favours. The first round of searches took place on January 13, they said. The spokesperson said ‘Operation Kanak-2’ is also a part of the effort to ascertain the quantum and scale of ongoing corruption in FCI and to unearth the sequence of larger conspiracy amongst the inter-connected participants.

“Further investigation, including the scrutiny of documents, interrogation of arrested accused, statement of witnesses, examination of persons acquainted with facts of the case and analysis of technical data had allegedly revealed that FCI officials, private rice millers and grain merchants were part of a well-organized syndicate and the recipients of huge bribe amounts collected during the process of procurement in FCI,” the official said. The bribes were allegedly circulated to officers at every level reaching up to headquarters in a well defined percentage of cuts at each level, it alleged.

The FIR gave details of such bribe collection in many FCI depots across Punjab. Officials ranging from technical assistants to executive directors were allegedly part of a syndicate receiving bribes from private millers, they said. “The bribe amount is collected at the depot level by FCI officials on a per truck basis being unloaded at the FCI depot during storage of grains. Thereafter this bribe amount is distributed to the different ranks of FCI,” the CBI has alleged.

The bribes were allegedly circulated to officers at every level reaching up to headquarters in a well defined percentage of cuts at each level, it alleged.

The FIR — registered under Sections 7, 8, 9, 10, and 12 of the Prevention of Corruption (PC) Act, 1988, and Section 120B of the Indian Penal Code (IPC) on January 10 — gave details of such bribe collection in many FCI depots across Punjab.

Officials ranging from technical assistants to executive directors were allegedly part of a syndicate receiving bribes from private millers, they said. “The bribe amount is collected at the depot level by FCI officials on a per truck basis being unloaded at the FCI depot during storage of grains. Thereafter this bribe amount is distributed to the different ranks of FCI,” the CBI has alleged. The agency has booked a total of 74 accused in the FIR, including FCI Executive Director Sudeep Singh and his wife Amritpreet Kaur, officials, rice mill owners, and middlemen, among others, who were allegedly indulging in corrupt practices, they said. Ravinder Singh Khera, one of the accused arrested by the CBI on January 15, had allegedly handed over Rs 10 lakh to Sudeep at his residence in Delhi as a quid pro quo for not blacklisting his firms. Later, another suspect, Mehar Singh, transferred Rs 5 lakh to the bank account of Amritpreet Kaur. They also sent an Apple watch worth Rs 49,800 to Sudeep.

The role of senior officers of the Punjab government is also under scanner for running ‘benami’ warehouses outsourced to the FCI. Among the 74 accused, 34 are serving officials, three are retired, 17 are private people, and 20 entities, officials said.

“It was further alleged that private rice millers and grain merchants were paying bribes to FCI officials for getting favours in accommodating procurement of low quality foodgrains, malpractices in day-to-day operations in unloading of foodgrains, managing enquiries against various malpractices, etc,” the spokesperson said.

It was also alleged that officials, in conspiracy with rice millers, covered up the shortages in stocks and accept low quality foodgrains which are transported to other parts of the country, he said. “The rice millers in turn allegedly pay a huge amount of bribe to the officials of FCI including technical assistants, DGM, AGM, and even Executive Director, as part of channelized corruption,” he said.

A CBI officer had told The Indian Express, “The scam, pertaining to procuring low quality grains, has been going on for a long time. These low-quality, substandard foodgrains were later transported throughout the country”.

At least 33 ‘tainted’ rice mills and foodgrain warehouses, out of 35 such mills, are located in Sangrur district. These private firms allegedly paid hefty bribe amounts to FCI officials for not blacklisting them over procuring substandard and poor-quality grains. Sources said owners of most of the rice mills and food grain stores are well connected.