The Central Bureau of Investigation (CBI) has registered an FIR against eight individuals, including officials from the Food Corporation of India (FCI) and the North Eastern Regional Agricultural Marketing Corporation (NERAMAC). The investigation concerns an alleged ₹28.87 crore rice diversion scheme where subsidized grain was reportedly sold to private traders instead of reaching intended beneficiaries. This case highlights governance risks within government-managed commodity distribution programs.
The Central Bureau of Investigation has launched an investigation into an alleged rice diversion scam involving the Food Corporation of India and the North Eastern Regional Agricultural Marketing Corporation. Authorities have filed a First Information Report against eight individuals, citing a calculated criminal conspiracy to exploit the Open Market Sale Scheme (Domestic). This federal program is designed to provide affordable grain to vulnerable sections of society, yet investigators claim the system was bypassed to funnel subsidized resources into the open market for personal profit.
The Alleged Diversion Scheme
According to federal investigators, the scam occurred between April and May 2026. The FCI Delhi Region reportedly authorized the release of 50,645 metric tonnes of rice to NERAMAC without following the mandatory e-auction process. Officials claim that NERAMAC was ineligible for such allocations under the 2025-26 policy, which restricts direct allocations to state governments and their designated entities. Despite these policy guidelines, the investigation alleges that officials processed the request with unusual urgency, bypassing standard regulatory oversight.
Financial Impact and Regulatory Concerns
The exchequer is estimated to have suffered a loss of ₹28.87 crore. This financial figure is based on the price difference between the concessional rate of ₹23,200 per metric tonne charged to the corporation and the market reserve price of ₹28,900 per metric tonne. The case brings significant attention to the governance and transparency of commodity distribution schemes. For stakeholders, such events highlight the importance of internal audit mechanisms and the potential for regulatory scrutiny to increase following such findings.
Involvement of Private Entities
The investigation has identified three private companies—Utapalakshi Agro Products, Dibesh Commercials, and Super Grains—as alleged channel partners in the diversion. These firms purportedly acted as intermediaries, coordinating with traders in the National Capital Region to lift grain directly from depots in Narela, Ghevra, and Mayapuri. The CBI alleges that internal records were falsified to create a trail suggesting the grain reached legitimate retail outlets, when it was actually diverted to private markets at inflated rates.
Investors and observers tracking the food and agriculture sector may monitor how this investigation affects administrative processes within government corporations. The key monitorables for the sector moving forward will be any changes to the e-auction protocols, stricter compliance requirements for entities participating in the Open Market Sale Scheme, and the eventual legal outcomes for the accused individuals and entities involved in the alleged falsification of records.