Enforcement Directorate (ED) on Monday gave its stamped affirmation to The Hitavada’s precision-reporting on the agency’s massive search operations conducted on 15 locations of six districts across the Chhattisgarh in connection with the ‘Naya NAN Ghotala’ – now being officially dubbed as ‘Custom Rice Milling Special Incentive Scam.’ 72 hours after the search operations, the federal agency came out with an official communique, which in a kind of way confirmed the credible news inputs prominently covered in City Line Front Page news dated October 20. Right from the chronology of the searches covering the residential premises of multiple individuals including CG-MARKFED officials and the subsequent findings incorporating the cash seizure of over Rs 1 crore done by ED sleuths; all details have synced well with the central agency’s official communique now. The Hitavada had accurately reported that ED’s search ops was fallout of Income Tax Department’s Office Memorandum (OM) based on a complaint filed by the tax enforcers. The report had also clearly underlined the modus-operandi of the syndicate of rice millers and senior officials of Chhattisgarh State Marketing Federation (CG-MARKFED) alleged to have extorted crores through kickbacks by misusing the special incentive for custom milling of paddy.

 

Meanwhile, as per an official communique issued by ED says, it conducted two-day long search operations on October 20 and 21, covering the premises of ex-MD of MARKFED, Treasurer & Office-bearers of Chhattisgarh Rice Millers Association (CMRA) District Marketing Officers (DMOs) and few Rice Millers in Custom Rice Milling special incentive scam. “ED initiated investigation on the basis of a complaint filed by Income Tax Department under various sections of IT Act, 1961 and IPC, 1860 before the court of Chief Judicial Magistrate (CJM) in Raipur, wherein it was alleged that that the CMRA officer-bearers of Chhattisgarh State Rice Millers Association colluded with CG-MARKFED and hatched a conspiracy to misuse the special incentive and earn crores of bribe kickback,” the communique maintained. Explaining the chronology of the scam, the communique said, a special incentive of Rs 40 per quintal of paddy was paid by the Government of Chhattisgarh to the rice millers for custom milling of paddy till Kharif year 2021-22. Subsequently, it was exorbitantly increased to Rs 120 per quintal of paddy later which was paid in two instalments of Rs 60 each. “The CMRA office-bearers under conspicuous leadership of its Treasurer Roshan Chandrakar and in connivance with Manoj Soni, MD, CG-MARKFED, started collecting kickbacks amount of Rs 20 per instalment for each quintal of paddy milled from the rice millers.

 

The details of rice millers, who have paid the cash amounts were sent by the district rice millers association to the concerned District Marketing Officer (DMO).The DMOs, upon receiving the bills of rice millers, cross checked them with the details received from concerned district rice millers association; this information was then passed on to the head office of MARKFED,” the communique said and pointed out further that the bills of only those rice millers, who have paid cash amount to the association, were cleared by MD, MARKFED for payment. The ED investigation revealed that after the increase in the special allowance from Rs 40 to Rs 120 quintal, payments were released worth Rs 500 crore, generating kickbacks of Rs 175 crore which were collected by Roshan Chandrakar with active assistance of MD MARKFED, for the benefit of ‘higher powers’. “During the search operations various incriminating documents, digital devices and unaccounted cash of Rs 1.06 crore were found and seized. Further investigation is under progress,” the communique concluded.