ED, CRPF attacked in West Bengal: What is the PDS scam they are investigating?

What is the alleged corruption in the PDS, which has come to be known as the “ration scam” in West Bengal?

According to investigators, rice and wheat were supplied in less than mandated quantities to fair price shop distributors by an influential businessman called Bakibur Rahman, and the balance grain was then sold in the open market for profit.

Bakibur Rahman was allegedly patronised by Mallick, who was Food and Supplies Minister in the previous TMC government from 2016 to 2021. Mallick’s portfolio was changed in the third term of the Mamata Banerjee government after allegations of the scam gained traction.

The ED opened an investigation into the allegations last year, and arrested Mallick early on October 27 after interrogating him for almost 22 hours. Bakibur had been arrested earlier on October 14.

According to the ED sources, owners of flour mills supplied less flour to distributors than they should have for the money they collected from the government. Mill owners interrogated by the ED are learnt to have said that for the price of 1 kg of flour, government suppliers would get only about 600 grams.

ED officials have alleged that suppliers and mill owners were complicit in the scam. Suppliers signed off against 1 kg of flour after receiving amounts that they knew were less. Bakibur had allegedly devised an “80-20” formula for sharing the illegal gains — ration suppliers got 20%, while the remaining was divided among the mill owners, complicit government officials, and the Minister’s office.

More than 100 seals of government departments were found in an apartment owned by Bakibur in Kaikhali near Kolkata.

How did the alleged scam come to light?

In May 2020, in the middle of the national lockdown following the outbreak of the Covid-19 pandemic, districts across West Bengal saw protests against alleged irregularities in the distribution of PDS grain. An FIR was registered in Nadia district.

Then Governor of West Bengal (and now Vice President) Jagdeep Dhankhar and the central government criticised the state’s handling of the PDS. On April 23, the Centre wrote to the state that “distribution of food grains in the state is nil under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) scheme”.

Under PMGKAY, each ration card holder was entitled to 5 kg of food grains and 1 kg of pulses free in addition to the monthly quota of 5 kg of subsidised food grains per person under the National Food Security Act (NFSA).

What has been the state government’s response to the allegations?

Mallick had denied the allegations at the time, and instead accused the Centre of supplying less than required quantities under PMGKAY. On Friday, the TMC described the attack on ED officials as “very unfortunate”, but accused central agencies of “provoking people by reaching different areas every day in the name of a raid under the BJP’s instruction”.

The investigation into the alleged PDS scam is one among several investigations currently ongoing against the TMC and its leaders. These include cases related to the recruitment of school teachers and municipal employees, and the smuggling of cattle and coal.