1. Nirmal, Adilabad top on Customer Milling Rice (CMR)  scam
2. About 60 Millers played mischief
3. Asked for CMR recovery, Millers failed to respond
4. Major loss to the Government’s revenue
5. To evade arrests, guilty millers left the country
6. Civil Supplies department using Revenue Recovery (RR) Act
7. Efforts on to seize the guilty millers properties/ assets

Certain Rice Millers have eaten the rice meant for the Poor, caused heavy losses to the government’s revenue and they escaped to evade the punishment. The Civil supplies department under the strict instructions from CicilSupplies minister Uttam Kumar Reddy have launched a major operation to catch the Bandicoots. Nirmal, Nizamabad district the CMR scam held on alarming scales. In these two districts, 60 Rice Millers have committed the fraud and diverted CMR rice worth Rs 403 Crore. They exported the rice to other states.

Rs 265 Crore scam in Nizamabad district

The Miller mafia in Nizamabad committed fraud on a big scale. About 48 Millers have committed rice fraud to the extent of Rs 254 Crore. Politicians, officials are among the accused. The Civil Supplies department officers are now busy identifying the properties of the accused millers and are preparing an action plan to seize their properties.  Cases under RR Act were registered against 48 Millers and so far only Rs 4.5 Crore was received from the accused.

One of the accused who went underground is former Bodhan MLA Shakeel. The officials found that he was running three Rice Mills. A Look out Notice was given against him. Officials are searching for another 47 Millers and their whereabouts. These Millers are blacklisted. Cases are booked in several police stations. Letters are also written to the Registration department to ensure that the accused did not transfer their properties.

Officers colluded

In Varni in Nizamabad district, Civil supplies department has allotted 19,640 Crore  Quintals of rice to one Miller. But when the Miller received a letter from the government to hand over 51,000 quintals of CMR rice, the Miller went to the High Court. Acting on his complaint, the High Court asked the department to register cases against the then DSO Chandra Prakash, Tahasildhar Nikhil Raj, Additional Collector Chandrasekhar.

Rs 150 Crore scam in Nirmal

In Nirmal district, the civil supplies department has allocated Rs 150 Crore worth Paddy to nine Millers. The Millers have diverted the Paddy to Maharashtra and Karnataka states made a killing. They did not supply the required CMR rice to the government but escaped to face the trail.

Civil supplies Commissioner DS Chouhan suspended DSO Kiran Kumar, DM Gopal, Enforcement Director Rama Devi. There were several allegations against the then DSO Kiran Kumar. It is alleged that he had allocated huge quantities to the Millers and received kickbacks for his act. 

The inquiry by Vigilance and Enforcement wing found the allegations as true. On the charges of corruption he was transferred many a times. He could mange plump postings using his political clout.

Systemic reforms

To address irregularities like those tied to moisture content disputes or delays (reported in November 2024), the government introduced measures such as separate procurement centers for fine and non-fine rice varieties, digital grain calipers for quality checks, and color-coded bags to prevent mixing. These steps indicate an effort to reduce miller-related discrepancies by improving the procurement process at the source, indirectly pressuring millers to comply with stricter standards.

The government has implemented several measures to streamline paddy procurementThe government has significantly expanded the network of paddy procurement centers (PPCs).  4,598 centers were operational, with directives to activate all 7,572 planned centers immediately and establish additional ones if needed. This expansion aims to enhance accessibility for farmers and reduce delays. Chief Minister Revanth Reddy and Civil Supplies Minister N. Uttam Kumar Reddy directed special officers and district collectors to visit procurement centers regularly, address farmer complaints promptly, and closely supervise operations. This hands-on approach aims to prevent bottlenecks and ensure accountability.

Monitoring officials

Civil Supplies Minister Uttam Kumar held review meetings and video conferences with department officials and collectors to ensure adherence to procurement guidelines. Officials failing to implement directives—like ensuring prompt payments or preventing miller malpractices—face scrutiny and potential disciplinary measures. Chief Minister and Civil Supplies Ministers have instructed IAS officers and district collectors to closely monitor Civil Supplies Department staff at procurement centers. Any negligence or complicity with errant millers—such as overlooking paddy diversion or delaying farmer payments—must be reported and acted upon immediately, with collectors escalating issues to the Civil Supplies Commissioner. The Civil Supplies department also collaborates with state vigilance and enforcement wings to investigate complaints against its officials, particularly those colluding with millers to undervalue paddy or manipulate procurement records.