ED Raids in Kodad as CMR Rice Diversion Probe Intensifies in Telangana

• ED conducts Kodad searches in CMR rice diversion case
• Rice mill accused of diverting government paddy worth Rs 50 crore
• Documents seized to trace money laundering angles

The Enforcement Directorate on Monday stepped up its investigation into an alleged Custom Milled Rice diversion in Telangana by conducting searches in Kodad town. The action is linked to suspected large scale irregularities in the supply of government paddy meant for public distribution.

According to officials, the searches were carried out at properties connected to relatives of a rice mill owner based in Kodad. The probe centres on Sri Venkateswara Rice Industries, a private mill on the outskirts of the town, which is accused of diverting rice meant to be delivered to the government.

Authorities say the mill regularly lifted paddy from procurement centres for conversion into Custom Milled Rice but failed to supply the processed rice for several years. Complaints over non delivery led to joint inspections last year by Civil Supplies and Revenue department officials.

During the inspections, officials reportedly found no stock of paddy or rice at the mill premises. Based on their findings, they concluded that the grain meant for government supply had been diverted into the open market. The value of the missing rice was estimated to be more than Rs 50 crore.

Following a formal complaint, a case was registered and the Enforcement Directorate took over the investigation to examine possible money laundering aspects. As part of the ongoing probe, ED teams seized records related to paddy procurement, rice delivery details and other financial documents during the searches.

Officials said the investigation is continuing to trace the money trail and determine how the proceeds from the alleged diversion were generated and routed.