Date:01/02/2008 URL: http://www.thehindu.com/2008/02/01/stories/2008020157670300.htm

Andhra Pradesh

Huge quantity of rice seized

Staff Reporter

KAKINADA: Officials of the Civil Supplies Department seized a massive quantity of rice (5,476 tonnes) which did not have endorsement as levy free, during raids on private warehouses near Kakinada port on Thursday.

On a tip off by the Vigilance and Enforcement sleuths, a Civil Supplies team led by the District Civil Supplies Officer PD Prakasa Rao busted the racket and seized the commodity worth nearly Rs. 7 crore. The traders are not supposed to purchase rice before the target of procurement of levy rice, which is 9 lakh tonnes in East Godavari district, is completed. The procurement has been done for export purpose and the traders could not show the way bills that should contain endorsement that the rice is levy free. This resulted in the seizure of the stocks. The racket was first detected during checking of some vehicles in Rajahmundry and Peddapuram areas on Tuesday.

According to the Joint Collector GSRKR Vijay Kumar, the bills were addressed to M/s LMJ International, Kakinada which was permitted by the Department of Commerce of the Union Ministry of Commerce and Industry to export 50,000 tonness of rice to Bangladesh. However, there was no official endorsement of the validity of the rice, that it was levy free. Cases have been filed against the accused under Sec. 6 (A) of the Essential Commodities Act.