The Chandrababu Naidu government in Andhra Pradesh issued orders on Friday for the formation of a six-member Special Investigation Team (SIT) to probe the alleged illegal export of rice meant for the Public Distribution System (PDS) from Kakinada.
The SIT will be led by Inspector General of Police (Crime Investigation Department) Vineet Brij Lal and include CID Superintendent of Police B Uma Maheshwar and Deputy Superintendents of Police T Ashok Vardhan, M Balasundara Rao, R Govinda Rao, and M Rathaiah as its members.
The Government Order (GO), issued by Chief Secretary Neerabh Kumar Prasad, stated that the SIT was constituted following a request from Director General of Police Dwaraka Tirumala Rao after 13 cases of illegal export of PDS rice from Kakinada were registered since July.
An independent inquiry by the state vigilance and enforcement (V&E) department revealed widespread inefficiencies, corruption, and organized criminal activities.
The most concerning finding was the organized illegal export of subsidized rice, involving millers, exporters, and influential individuals with deep political connections.
The V&E inquiry further disclosed that subsidized rice was being polished to enhance its appearance or rebranded with falsified labels to resemble premium export-quality rice.
These alterations allowed the rice to fetch significantly higher prices in international markets, particularly in African countries where demand is high.
Exporters, often in collusion with Custom House Agents (CHAs), falsified documents to misrepresent the rice as non-subsidized varieties such as "parboiled" or "broken" rice, thereby concealing its origin.
“The vigilance inquiry revealed that this operation exploits weak enforcement mechanisms at key export hubs, including the ports of Kakinada, Krishnapatnam, and Chennai,” the GO said, recommending that a specialized agency take up the investigation.
Consequently, the government has formed the SIT to fully investigate the malpractice, identify key perpetrators, and ensure appropriate legal action against those involved.
The SIT has been authorized to request information and assistance from any government department during the investigation.
"All government departments are instructed to cooperate fully with the SIT, providing any information or technical assistance as required," the GO stated.
The SIT will possess all powers of investigation as outlined under the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023, including search, seizure, examination of witnesses and documents, and arrest and detention of accused persons, subject to applicable laws.
The GO further mandated that the SIT submit fortnightly progress reports to the government.
