Police arrested two men for indulging in selling of wheat bought from ration depots at higher rates, on Saturday.
Police have also recovered 301-quintal subsidised wheat loaded in two trucks from their possession.
The accused have been identified as Rupinder Singh alias Rinku of Dashmesh Nagar in Sunam Udham Singh Wala and Bhupinder Singh alias Bhinder of Jagatpura in Sunam Udham Singh Wala.
Police have also booked their accomplice, trader Deepak Kumar of Deepa in Dehlon.
He is at large. Kumar used to procure the wheat meant for underprivileged people from ration depots.
Inspector Mohinder Singh, incharge at crime investigation agency (CIA), staff-2, said, “Police arrested the accused from Dehlon area following a tip-off on Saturday.”
He said, “A case under Section 7 of the Essential Commodities Act and 420 (cheating) of the Indian Penal Code (IPC) has been registered against the accused at Dehlon police station.”
“During interrogation, the accused revealed that they used to buy wheat from ration depots, and sell it to flour mills and shops at higher rates,” Singh said.
They also told police that Deepak had stored the wheat in different godowns in Sangrur. He had asked them to supply it to different shops and flour mills in Ludhiana.
Inspector said the seized sacks of wheat bear government stamp. The accused used to transfer the wheat into other sacks before supplying it to market, he added.
“Police are trying to know about involvement of more people in the racket. Depot holders, who sold subsidised wheat to the accused, will also be arrested,” said the inspector.
“Deepak Kumar is already facing trial in a case registered against him under the Essential Commodities Act at Dehlon police station. Police teams have been dispatched for his arrest,” he added.