BRS working president KT Rama Rao demanded for probe into scams worth over Rs.1,100 crore involving the Congress government, pertaining to paddy sales and fine rice purchases in Telangana. He wanted the State government to immediately cancel the tenders and initiate strict action against the companies involved, besides seeking investigation by central agencies like Enforcement Directorate, Central Bureau of Investigation and Vigilance department into the scam.

He said Congress leaders who were collecting bribes from people from various sectors, had raised curtains for the massive scam involving the Chief Minister’s Office and senior Congress leaders from Delhi. He stated that despite the BRS exposing the scandal about 15 days ago, there was no response from neither Chief Minister A Revanth Reddy nor Civil Supplies Minister N Uttam Kumar Reddy in this regard.

Addressing a press conference at Telangana Bhavan here on Sunday, Rama Rao said the first scam involved global tenders for sale of 35 lakh tonnes of paddy, and the second was the purchase of 2.2 lakh tonnes of fine rice for residential welfare hostels. Both the scams amounted to Rs 1,100 crore.

The timeline of the scam was outlined: a committee was appointed on January 25, and on the same day, guidelines were released and tenders were called, indicating corruption.

“Though the local rice millers offered to buy paddy at Rs 2,100 per quintal, the eligibility rules were changed, and a conspiracy in the name of global tenders was initiated. Companies like Kendriya Bhandar, LG Industries, Hindustan Company, and Naqaf won these tenders, quoting prices between Rs 1,885 and Rs 2,007 per quintal, lower than the local price by Rs 93 to Rs 200,” Rama Rao


The BRS working president charged these companies of extorting money from rice millers, demanding Rs 2,230 per quintal under the pretense of covering various costs, including payments to Delhi leaders and the Congress party’s election expenditure. “They are also pressurising the millers that if they do not pay the prescibed amount, the Vigilance and the Civil Supply departments will conduct raids,” he said.

He further revealed that Rs 700 crore was collected from millers by imposing an additional levy of Rs 200 per 35 lakh tonnes. He questioned the legality and authority of these companies to collect money from millers. He feared that if these companies were allowed to procure paddy beyond the deadline of May 23, it would incur an additional loss of Rs 150 crore per month towards monthly interests.

Rama Rao also pointed out a Rs 300 crore scam in the purchase of 2.2 lakh tonnes of fine rice meant for poor students studying in various welfare hostels. He criticised the Congress government for buying rice at Rs 57 per kg when it could be procured locally at Rs 35 per kg from the millers as was done during the previous BRS regime.

In total, these scams amounted to Rs 1,100 crore, with suspicions pointing to the involvement of Revanth Reddy and high-ranking officials from Hyderabad to Delhi. He doubted such a huge scam went unnoticed by the Central government as well as the officials of the Food Corporation of India (FCI) and Central investigation agencies.

“If Revanth Reddy has integrity, he must order for an in-depth investigation into these tenders by a sitting judge. If the Centre, FCI, and State government do not respond, we will pursue legal action and also expose their nexus before the people,” Rama Rao said.
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