Police have booked four people, owners of rice mills, for alleged embezzlement of paddy worth Rs 2.2 crore, on a complaint from the district food and supply controller Parveen Singh.
More than 12,000 bags handed over to the mills for processing have been found missing at the mill premises.
The accused have been identified as Gurdas Singh Brar, resident of Khunde Halal village; Jagpinder Singh, a resident of Dabwali Rahurian Wali village; Shaminderpal Singh, a resident of Ratte wala and Baljinder Singh, the owners of Khalsa, Dasmesh and BS rice mills, respectively.
Instead of paddy bags, wooden crates and iron roads were placed in the godowns to fool any inspection staff.
A case has been registered against four people at the Malout Sadar police station under Section 420 (fraud) and 406 (criminal breach of trust) of the Indian Penal Code.