ED arrests three brothers for involvement in PDS scam in Maharashtra

According to the agency, the trio has generated about ₹177 crore by their illegal activities and the agency is looking into the financial irregularities in the ration scam

The Enforcement Directorate (ED) has arrested three brothers from Nagpur for their alleged involvement in diverting food grain to be distributed to the poor through public distribution system (PDS), said the agency. The agency, which is looking into the financial aspect of the ration scam, claimed that the trio, arrested this Wednesday, generated about ₹177 crore with their illegal activities.

Representational Image. (HT archive)

The ED has charged Sampat Namdeo Ghorpade, Arun Namdeo Ghorpade and Vishwas Namdeo Ghorpade under the provisions of Prevention of Money Laundering Act, 2002 (PMLA). A special court has remanded them to ED’s custody till February 26.

The ED probe stems from a First Information Report registered by the Nashik police in 2015 against the three for forgery, falsification of documents and criminal conspiracy. The case involved purported misappropriation of foodgrains in Sinnar taluka where more than 250 sacks of rice from government godowns were sold directly to rice mills in 2015.

Further investigation revealed irregularities on a much larger scale and a full fledged, organised syndicate behind it, prompting the state government to invoke the stringent Maharashtra Control of Organised Crime Act (MCOCA) which is generally used against organised crime syndicates of the underworld. In fact, it was the first such instance that a charge sheet was filed against the ration mafia in the state under MCOCA.

“The three accused had indulged in unlawful activities as an individual singly and jointly as a gang. The three and their syndicate generated the proceeds of crime of around ₹177 crore,” an ED official said on the condition of anonymity.