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Paddy: Ghost procurement, fake gate passes at vortex of multi-crore scam; 25 held
The arrests have been made in a total of six FIRs registered at different police stations of Karnal last year, DSP (City) Rajiv Kumar, said on Wednesday.
With the arrest of four officials including three mandi secretaries and a former District Food and Supplies Controller (DFSC), on Tuesday, in the multi-crore paddy procurement scam during the 2025-26 season, the Karnal police have so far arrested a total of 25 officials, employees, arhtiyas, rice millers and private individuals. Officials said large-scale irregularities were uncovered in the issuance of fake gate passes, leading to ghost procurement with official records showing receipt of paddy that never actually arrived at the grain market.
The arrests have been made in a total of six FIRs registered at different police stations of Karnal last year, DSP (City) Rajiv Kumar, said on Wednesday.
He said that a day after the arrest of four officials, they were presented before different local courts, which sent them to different periods of police remand.
Accordingly, the court granted a three-day remand of Assandh Market Committee Secretary Krishan Dhankar. Similarly, a two-day remand was granted each for former secretary of Karnal Market Committee Asha Rani and Jundla Market Committee secretary Deepak Suhag.
Former District Food and Supplies Controller (DFSC) Karnal, arrested earlier by the Anti-Corruption Bureau (ACB) in connection with a case registered at Gurugram, was brought on production warrant and sent to one-day police remand.
“Anil Kumar has been held under a case registered at Taraori police station. He has been accused of taking illicit commission during the procurement process at Taraori grain market,” DSP Kumar told the reporters.
Interestingly, Asha Rani, who is considered a prime accused in an FIR registered at Karnal city police station, has now been arrested in connection with another FIR registered at the Karnal Sadar police station for allegedly issuing fake gate passes.
She was suspended by the state government for her alleged involvement in the scam. She is the daughter of former INLD MLA from Nilokheri seat in Karnal, Mamu Ram Gonder.
DSP Kumar said, “Asha Rani was earlier booked in a case concerning Karnal mandi in which she applied for bail before a local court that was dismissed. However, she was granted bail from Punjab and Haryana High Court. Now, she is arrested in another case for her alleged involvement. If required, we may move application before the High Court seeking her bail cancellation.”
A suspended mandi supervisor Pankaj Tuli, who was shifted from Karnal jail to PGI Chandigarh, died during treatment on November 20. A total of ₹5 lakh was recovered from him during the probe, police said.
Modus Operandi
Disclosing the modus operandi, investigators said that large-scale irregularities were uncovered in the issuance of fake gate passes, leading to ghost procurement with official records showing receipt of paddy that never actually arrived at the grain market, which lead to revenue loss to the government as the government paid on MSP of ₹2,389 per quintal.
“During the investigation, major involvement of mandi secretaries was found, who actually issued fake gate passes showing entry of excess paddy. This was a well-organised nexus of the market committee, procurement agencies, arhtiyas, millers and others,” a police official part of the probe team, said.
When asked about this, DSP Kumar said that the land owned by farmers was shown on the Meri Fasal, Mera Byora (MFMB) portal during crop registration by arhtiyas-millers.
“To avail MSP, the farmers are mandated to register on MFMB. The arhtiyas-millers made fake registration of land, not even meant for farming. This all enabled issuance of gate passes on their names. Further, fake purchase was shown by the procurement agencies and was later shown inward at mills. This was all bogus and only on papers,” he said.
Paddy from other states to adjust the gap
DSP Kumar said that to bridge this shortfall between records and actual stock, the millers sourced paddy or rice from other states at cheaper prices, while the government paid MSP resulting in major revenue loss.
“The gap was adjusted by the millers so that they are not caught during physical verification. However, the SIT unearthed the whole scam. No rules were followed and the accused worked in a collision to cause major revenue loss to the government,” he added.
The probe team have also recorded statements of several farmers on whose names fake gate passes were issued and payments transferred to their accounts.
The DSP said that the farmers have also disclosed that they later returned the money credited to their accounts to arhtiyas-cum-millers in cash or account transfers.
Mixed response from farmer unions
Activists of Bharatiya Kisan Union (Sir Chhotu Ram), meanwhile, distributed sweets outside the mini secretariat following the arrest of four officials.
Union’s spokesperson Bahadur Mehla said they thanked the district administration and police, particularly former SP Ganga Ram Punia for uncovering the whole scam and arresting top corrupt officials in the district.
On the other hand, the state president of BKU’s Tikait faction, Ratan Mann expressed dissatisfaction and said that the case was a thoroughly planned, organised, and systematic crime but the real masterminds of this scam and the major conspirators, who enjoy political protection, are still at large.
“This scam will be included as a special agenda at the SKM national meeting to be held in Kurukshetra on February 24,” he added.
