The district has reported blatant misuse of rice allotted to below poverty line (BPL) families under the Anna Bhagya scheme.
Cases of illicit liquor being sold at a fair price shop in Gondi village of Bhadravati taluk have also been reported.
Landless agricultural labourers form a major chunk in the village, which has high rate of alcoholism.
The owner of this fair price shop reportedly deducted rice allotted to BPL cardholders to settle the dues they owed him after purchasing liquor. The owner then sold this rice in the open market for a higher price.
The police and officials of the Department of Food and Civil Supplies raided the shop on March 5 and arrested the owner, S.K. Narasimha Gowda.
Meanwhile, owners of two other grocery shops in Marnamibail locality of Shimoga city were found purchasing rice allotted under the scheme from the beneficiaries at Rs. 10 a kg. They then sold it for a higher price.
The police said that most of the beneficiaries had borrowed loans from the owners of these grocery shops. They had compelled the beneficiaries to sell the rice to them.
Officials of the Department of Food and Civil Supplies raided the grocery shops on April 17 and seized 21 quintals of rice purchased from BPL cardholders.
A case has been registered against Girijamma and Mushir Husein, owners of the shops, under the Essential Commodities Act.
Deputy Director of the department told The Hindu that the public should lodge a complaint against persons involved in misuse of rice. Nine cases have been booked under the Act so far, he said.
The beneficiaries of Anna Bhagya scheme are also unhappy about the quality of rice.