Hyderabad: A political storm has erupted in Telangana over paddy procurement, with BJP leader A Maheshwar Reddy and BRS working president KT Rama Rao alleging Rs 800 crore to Rs 1,000 crore scam being perpetrated by the Congress government in global auction of paddy from Rabi 2022-23 marketing season. Civil supplies minister N Uttam Kumar Reddy has denied any wrongdoing.
The allegation are based on global tenders to auction the rice that has been lying in the rice mills since Rabi 2022-23 marketing season. There is over 35 lakh tonne paddy lying at the mills, which was supposed to be delivered to the FCI. This was the paddy got damaged due to unseasonal rains but was procured by the then government. Lying in the rice mills, the paddy got discoloured and sprouted, and was marked off as unfit for human consumption.
Four companies had won the bid for global tenders to buy paddy from the Telangana State Civil Supplies Corporation (TGSCSC) for Rs 2,007 per quintal, as per the agreement. The deadline set for the four companies to lift that paddy from the mills after paying was 90 days, which has ended.
The issue flared up after BRS working president KT Rama Rao and Maheshwar Reddy revealed memoranda of understanding between these companies and other rice mills, where the price for purchasing the paddy was Rs 2,229 per quintal.
The opposition leaders allege that the excess amount being demanded by the four companies from the rice millers is where the State government has been trying to extort money from the rice millers to the tune of Rs 700 to Rs 800 crore, which they have been terming as ‘scam money.’
Uttam Kumar dismissed the allegation, questioning how the State government was concerned with further transactions after the agreement between the four companies was for Rs 2,007 per quintal paddy.
KTR, who claimed that not even 20 per cent of those lots of paddy had been lifted yet, demanded the State government release a white paper on how much paddy was lifted by these four companies till now.
Even Maheshwar Reddy sought to know how the four companies were giving the rice millers with whom they got into MOU, time to pay for the paddy in four tranches when the deadline for lifting paddy from the mills has expired.
“On one hand the civil supplies department has written to FCI to extend the deadline for delivery of custom milled rice from Rabi 2022-23, for which the Centre has given time till May 15. On the other hand, the four companies in question haven’t lifted the paddy from the mills as per the agreement, but are giving the rice millers time till September to pay the amount. So did the four companies know that they were going to get a further extension to pay for the paddy,” he asked, addressing media at BJP party office on Monday.
The opposition has questioned the speed at which a committee was formed for the auction of this paddy, regulations were framed and tenders were called for, all in one day.
Maheshwar Reddy has demanded that the State government seek an enquiry by CBI or a sitting judge inquiry into the alleged scam.
The second allegation of the opposition leaders is that the State government has called for a tender to procure fine grain rice to supply to State government educational institutions as part of the mid-day meal scheme at a set price of Rs 5,700 per quintal.
The opposition leaders questioned how the value of fine grain rice which costs between Rs 42 or 43 in the retail market, is being procured by the State government at such a high cost when it already has a significant quantity of fine grain rice in the state pool of rice. The opposition sniffs Rs 300 crore scam in this as well, taking the total scam to Rs 1,050 crore to Rs 1,100 crore.
Uttam Kumar, who denied that even a single grain of fine grain paddy was lifted, said that the tender for Rs 5,700 has been cancelled by the corporation. He went on to suggest that the opposition leaders could deliver fine grain rice for Rs 42 to the State government.
With that, he meant that fortification, transportation of rice and procurement of gunny bags (all combined), would certainly cost more.
The opposition leaders have been demanding the State government to blacklist the four companies for not lifting the paddy as stipulated in the agreement. They also demanded the State government to release the list of rice millers against whom action has been taken under the present government.
KTR has alleged that one of the four companies (Kendriya Bhandar) which was blacklisted by the BRS government, was being given business by the present Congress government.
Uttam Kumar dismissed this allegation too, stating that the company was removed from the blacklist by the BRS government itself.
The allegations took a dirty turn after Uttam Kumar had alleged that Maheshwar Reddy became BJLP leader by paying money to BJP high command. He also commented that Maheshwar Reddy was probably trying to overtake BJP state president G Kishan Reddy to climb the political ladder quickly.
Maheshwar Reddy cautioned Uttam Kumar not to get into personal attacks, as he knew the dark secrets of the latter, as he worked in the Congress alongside Uttam for ten years, and that they were also related.
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