Rs. 2.80 crore fine levied on mill

It was involved in illegal rice transportation

October 08, 2015 03:52 pm | Updated 03:55 pm IST - Kolar

File photo showing rice laden trucks seized by the Food and Civil  Supplies Department authorities in Bangarpet in September.

File photo showing rice laden trucks seized by the Food and Civil Supplies Department authorities in Bangarpet in September.

In a major and bold administrative measure to check illegalrice trading in Kolar district, Deputy Commissioner K.V. Thrilokchandra has ordered a rice mill in Bangarpet to pay Rs. 2.80 crore as penalty in an illegal rice transportation case.

The Food and Civil Supplies Department officials seized 30 rice-laden trucks at Bangarpet Railway Station on September 14 following suspicion that the rice was being transported illegally. A 37,442-quintal rice consignment had arrived from a goods wagon on that day. But more than 12,000 quintals was shifted to godowns of PRS Traders in Bangarpet town by the time authorities reached the spot.

Raghunath Shetty, the owner of the mill, claimed that it had been bought in Chattisgarh through Venkatesh Global Traders in Chennai and submitted bills to this effect.

However, not satisfied with the bills produced, the Department officials sent a five-member team on September 20 led by Assistant Director Nagaraj Hittalamani to Chattisgarh. The team conducted enquiries in Raipur and Rajnandgaon districts there. The Hindu published an exclusive report on the team’s proposed operation in Chattisgarh on September 20.

The team officials found that most of the bills submitted by the trader were fake and tampered with and they submitted a report. Following this, the Deputy Commissioner issued a notice to Raghunath Shetty to pay Rs. 2,86,12,739 within a fortnight. The penalty was levied on 12,259 quintals of rice that was transported to the trader’s godown.

He warned that a criminal case will be registered if penalty was not paid. The penalty was calculated based on the market price of the rice lifted to the godowns, Deputy Director (in-charge) of the Department, B. Nagaveni, told The Hindu on Thursday.

The Deputy Commissioner also ordered confiscation of 18,676 quintals of rice which was seized during the raid under the Karnataka Essential Commodities Act, 1955, she added. The rice has been stored in the Karnataka State Food Corporation (KSFC) godowns.

A thriving, murky trade

Procuring rice, including PDS rice, for a low price and selling it at higher price in the market has been going on in Bangarpet for a long time. Raids have been conducted several times and rice seized in the past. But the illegal transporters were allowed to go scot free in spite of farmers’ outfits stopping the trucks and handing them over to authorities. No action was initiated against the erring traders so far owing to the ‘political influence’ they exerted on officials. Some corrupt officials were also blamed for the inaction against the traders.

This is the first case where stringent action was initiated and hefty fine levied on traders engaged in illegal activities.

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