Date:25/08/2008 URL: http://www.thehindu.com/2008/08/25/stories/2008082557240100.htm

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CBI to investigate rice scam

Raghava M.

BANGALORE: Even as the Corps of Detectives (CoD) gave a clean chit to 19 officials in the multi-crore food-for-work scam in Mangalore, the State Government, under directions from the court, wants the Central Bureau of Investigation (CBI) to investigate it all over again.

Sources in the Home Department told The Hindu that the action followed after the magistrate, before whom the CoD filed a ‘B’ report in the scam, expressed “unhappiness” over the manner in which the State agency had conducted the investigation.

After investigating the scam that was unearthed in 2004, the CoD had filed a ‘B’ report before the first Additional City Metropolitan Magistrate, Mangalore, closing the case.

The sources said that the CBI officials appeared before the magistrate and expressed their inability to take up investigation based on the court order and expressed the need of an order by the State Government.

The Yeddyurappa Government held discussions with senior police officials and decided to hand over the case to the CBI, the sources added.

The scam pertains to recovery of Rs. 13-crore worth of illegally stocked rice. The Centre released 17,000 tonnes of rice in 2004 for distribution among workers under the food-for-work scheme.

The scam came to light after the Assistant Director of Food and Civil Supplies, Vijaykumari U. Shenoy, raided the N.M.P.T (MDL), K.V.S. Kamath, Kenwil and Somayaji godowns in Mangalore and recovered 17,000 tonnes of rice. After the scam was unearthed, 19 officials were named as accused in two cases registered in the Mangalore Rural and Penambur police stations.

The officials were accused of colluding with Guru Binny Rice Mills and 38 rice traders and moving the rice stock for export by Mittal Agro, Sharp Menthal and Tayal, all rice exporting firms.

It was alleged that the officials, who were in-charge of implementing Swarna Grameen Rozgar Yojana and drought relief work, colluded with the other accused and received rice from the Food Corporation of India. Jagadish of Guru Binny Rice Mills along with others allegedly transported the rice from the FCI godown to four other godowns in Mangalore.

Meanwhile, the accused have filed an appeal in the Mangalore District Sessions Court questioning the authority of the magistrate.