CBI Files Case Against FCI, NERAMAC Officials Over Alleged Diversion Of Subsidised Rice
Agency alleges traders lifted rice meant for affordable distribution to workers and migrants and resold it for profit, causing FCI a loss of ₹28.87 crore.
Published : September 1, 2026 at 7:34 PM IST
|Updated : September 1, 2026 at 7:39 PM IST
New Delhi: The Central Bureau of Investigation (CBI) has registered a case against eight persons and two unknown accused, including senior officials of the Food Corporation of India (FCI) and the North Eastern Regional Agricultural Marketing Corporation Ltd (NERAMAC), over the alleged irregular allocation and diversion of subsidised rice.
According to the FIR, rice procured at a concessional rate under the Open Market Sale Scheme (Domestic), or OMSS(D), was allegedly lifted from FCI depots by private traders and subsequently sold to other traders for profit, instead of being distributed to daily wage earners, labourers and migrant workers as proposed.
The alleged transactions resulted in a wrongful loss of ₹28.87 crore to the FCI, according to the CBI.
The FIR states that the FCI's Delhi Region allotted a total of 62,000 metric tonnes (MT) of rice to NERAMAC, of which approximately 50,645 MT was lifted at a concessional rate of ₹23,200 per MT under the OMSS(D).
The prevailing reserve price of rice under the scheme was ₹28,900 per MT, or ₹2,890 per quintal.
According to the FIR, clauses of the OMSS(D) Policy for 2025-26, dated July 10, 2025, stipulated that NERAMAC, despite being a Government of India-owned enterprise, was not eligible to receive rice allocation without participating in an e-auction. The policy allowed such allocation without e-auction only to state governments and state government-owned corporations, the agency alleged.
The CBI further alleged that payments for the allocation of rice were routed through various private entities, including millers and wholesale rice dealers.
“There was no record to show that the rice was distributed for the stated purpose,” the FIR stated.
The agency also alleged that the First-In, First-Out (FIFO) principle was not followed for liquidating older stocks.
According to the FIR, had the quantity of rice lifted by NERAMAC at the concessional rate been sold through an auction at the reserve price of ₹28,900 per MT, the FCI would have realised an additional ₹28.87 crore.
Proposal For Affordable Rice Distribution
The FIR stated that a NERAMAC official based in Guwahati had, on January 7, 2026, written to the Minister for Food and Civil Supplies of the Delhi government, seeking an allocation of 31,000 MT of rice per week under the category of “Sale of Rice without participation in e-auction” under the OMSS(D) 2025-26 policy.
The stated objective was to ensure the availability of rice at affordable rates for the general public, daily wage earners, labourers, migrant workers residing in Delhi and people not covered under the Public Distribution System (PDS) due to the absence of ration cards.
The proposal was subsequently forwarded to the FCI, Delhi Region, according to the FIR.
The agency further alleged that NERAMAC entered into three separate Memorandums of Understanding (MoUs) on March 25, 2026, with three entities based in Assam and Kolkata for the distribution of agricultural products to consumers and non-government organisations, including private retailers, wholesalers and NGOs.
According to the FIR, these MoUs were neither vetted by NERAMAC's legal consultant, as required under the procedure, nor forwarded to the Personnel and Administration Department for notarisation.
The stated purpose of the MoUs was also allegedly different from the objective mentioned in the proposal submitted by NERAMAC to the Delhi government in January.
“It is alleged that NERAMAC falsely mentioned in the MoUs that it was authorised to procure and distribute rice under the OMSS(D) Policy, though it was not authorised by FCI,” the FIR stated.
Traders Allegedly Asked To Lift Rice From FCI Depots
According to the CBI, instead of distributing the rice to the intended beneficiaries, NERAMAC allegedly contacted several traders based in Delhi-NCR and asked them to lift the rice from FCI depots.
The traders were allegedly asked to deposit ₹23.25 per kg into NERAMAC's bank account and were paid a commission ranging from 64 paise to ₹2.50 per kg, the FIR stated.
The traders allegedly remitted money in advance to NERAMAC, which subsequently transferred the funds to the FCI's Delhi Region for the allocation and release of rice under the OMSS(D), after deducting administrative charges of five paise per kg.
According to the FIR, the traders informed NERAMAC officials about the names of persons who were to be authorised to lift the rice from FCI depots at Ghevra, Mayapuri and Narela in New Delhi.
NERAMAC subsequently issued several letters from April 18, 2026 onwards, authorising these individuals as its representatives to take delivery of rice from the FCI depots, the agency alleged.
The CBI alleged that the traders subsequently lifted the rice and sold it further to other traders, earning substantial profits.
Alleged Bogus Records and Distribution Charts
The FIR further alleged that bogus date-wise charts were prepared and maintained in NERAMAC records to show that the rice had been distributed to the public through retail outlets at various locations in Delhi and Noida.
It was also alleged that appointment letters were prepared to show that 23 sub-distributors had been appointed by a private company to execute work related to the OMSS(D).
These documents were allegedly maintained in NERAMAC's records, the FIR stated.
According to the CBI, the FCI Regional Office in Delhi allocated 62,000 MT of rice to NERAMAC between April 13 and May 15, 2026, of which approximately 50,645 MT was released.
“These traders lifted the rice from FCI depots and further sold the rice to other traders, earning huge profits,” the FIR alleged.
The agency has alleged that the manner in which the subsidised rice was allocated and released caused a wrongful loss of ₹28.87 crore to the FCI.
The CBI has registered the case and initiated further investigation into the alleged conspiracy, allocation process, role of officials and the subsequent movement and sale of the rice.
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