Three persons have been booked for embezzling wheat from a government storehouse and selling it privately in Sherpur near Dhuri, 15 km from here.
Investigation officer Gurcharan Singh said all three accused have been arrested.
He added that the accused have confessed that they had brought 125 quintal wheat from warehouse godown in Sandore village and changed the bags to sell it in villages. The police said wheat they were selling was meant to be distributed to the poor through ration depots in the villages.
The accused have been identified as Major Singh, Lakhwinder Singh and Malkeet Singh, all residents of Sandore.