Massive PDS Rice Scam Busted in Telangana: 15 Arrested”
₹17 Lakh PDS Rice Racket Exposed in Palvancha”“GPS Fraud Uncovers Huge PDS Rice Diversion Scam”
“GPS Fraud Uncovers Huge PDS Rice Diversion Scam”
“Telangana Vigilance Cracks ₹17L PDS Rice Scam”Palvancha PDS Scam: Contractor, Dealers in Big Trap”
Palvancha PDS Scam: Contractor, Dealers in Big Trap”
Massive PDS Rice Diversion Racket Busted in Palvancha: 15 Accused, ₹17.22 Lakh Government Loss
Hyderabad, December 12:
A major racket involving the large-scale diversion of Public Distribution System (PDS) rice was busted by the Telangana Vigilance Task Force at the Mandal Level Stock (MLS) Point in Palvancha, Bhadradri Kothagudem district. Officials uncovered a well-organised criminal conspiracy in which government rice worth ₹17,22,600 was being siphoned off into the black market.
The case, registered as Cr. No. 456/2025 under Sections 318(4), 316(5) r/w 61(2) BNS and Section 7 of the Essential Commodities Act, reveals widespread collusion among contractors, MLS staff, fair price shop dealers and a rice mill owner.
GPS Device Shifted to Bike to Mislead Officials
The operation came to light on 2 December at 4:15 PM, when the Vigilance Task Force, acting on credible information, intercepted a Bajaj Pulsar (AP 20 AV 1899) carrying fake truck chits. Investigators discovered that the GPS tracker meant for the lorry was illegally attached to the motorcycle to show a misleading vehicle movement trail.
The lorry, TS 29 T 5139, was found near Nakiripeta carrying 600 bags of PDS rice (300 quintals), which were being diverted to the black market.
Key Accused Confess; Illegal Payments Exposed
The motorcycle rider Prasanth (A2), assistant to Stage-I contractor N. Srinivas (A1), confessed to the diversion plan and admitted to receiving ₹10,000 per lorry.
Lorry driver-cum-owner Anil Kumar (A5) revealed he parked the vehicle under instructions from Narahari (A14), owner of Ramya Trader Rice Mills.
MLS Point Incharge Satyavathi (A3) admitted she was paid ₹20,000 per lorry, while Data Entry Operator Krishna Kumar (A4) received ₹10,000 for facilitating the illegal dispatch. The hamali Nagaraju (A15) also cooperated in the operation.
Eight fair price shop dealers—A6 to A13—confessed they were promised ₹25 per kg of diverted PDS rice.
Fake Receipts, Manipulated Records Used to Cover Up Crime
Officials found that falsified records, manipulated stock entries, and fake receipts were systematically created to show legitimate movement of rice stocks while the actual consignments were diverted.
Repeated Offences by Contractor
Stage-I contractor N. Srinivas (A1) confessed to having diverted five lorry loads earlier, citing substantial illegal profits.
Investigators also found that he operates Nalgonda Rice Industries at Penpahad under his brother’s name N. Ramesh, and works as a paddy contractor in Athmakur (S) Mandal, Suryapet district, under Sri Lakshmi Venkateshwara Lorry Transport.
Accused Network Involved in the Racket
The organised group involved:
- A1 – N. Srinivas (Stage-I Contractor)
- A2 – Prasanth (Assistant)
- A3 – Satyavathi (MLS Point Incharge)
- A4 – Krishna Kumar (Data Entry Operator)
- A5 – Anil Kumar (Driver-cum-Owner)
- A6 to A13 – Fair Price Shop Dealers
- A14 – Narahari (Rice Mill Owner)
- A15 – Nagaraju (Hamali)
Government Suffers Massive Loss
The fraudulent diversion of 300 quintals of essential commodity stock led to a direct government loss of ₹17,22,600. The Commissioner of Civil Supplies has been briefed, and further investigation is underway.
