ED Uncovers New ₹175 Crore Bribery Scandal in Chhattisgarh

ED Uncovers New ₹175 Crore Bribery Scandal in Chhattisgarh

VoM News Desk | October 24, 2023 | 08:53 AM IST | Breaking News, Chattisgarh | Follow on Google News

ED Uncovers New ₹175 Bribery Scandal in Chhattisgarh

ED Uncovers New ₹175 Crore Bribery Scandal in Chhattisgarh

The Enforcement Directorate (ED) has brought forth yet another alleged financial impropriety in the state of Chhattisgarh, which is currently in the midst of election season. This time, the ED alleges that a former managing director of the state Marketing Federation Limited (MARKFED) and an office-bearer of a local rice millers’ association were involved in generating Rs 175 crore in bribes for the benefit of “higher powers.”

The ED’s Claims

The ED asserts that this financial scheme came to light following searches conducted against former MARKFED chief Manoj Soni, members of the state rice millers’ association, including treasurer Roshan Chandrakar, district marketing officers, and several rice millers. These searches took place on October 20 and 21.

According to the ED, the alleged wrongdoing was first identified through a complaint lodged by the Income Tax Department, which claimed that office-bearers of the Chhattisgarh rice millers’ association collaborated with MARKFED officials to manipulate a special incentive scheme. Under this scheme, the state government paid rice millers Rs 40 per quintal of paddy for custom milling of rice. However, the ED alleges that this incentive was substantially increased to Rs 120, distributed in two installments of Rs 60 each.

The ED’s findings indicate that in collaboration with the treasurer of the rice millers’ association, Roshan Chandrakar, and MARKFED’s former managing director, kickbacks of Rs 20 per installment for each quintal of milled paddy were collected from rice millers. The ED has identified the rice millers who made these cash payments and alleged that only those bills were cleared for payment to MARKFED by the MD.

The increase in the special allowance, according to the ED, resulted in Rs 500 crore in payments, leading to the generation of Rs 175 crore in kickbacks. These kickbacks were purportedly collected by Mr. Chandrakar with the assistance of Mr. Soni for the “benefit of higher powers.”

The ED’s searches have resulted in the seizure of “incriminating” documents, digital devices, and “unaccounted cash” amounting to Rs 1.06 crore.

Background and Impact

This latest development comes amidst a series of investigations by the ED, uncovering various alleged financial irregularities in Chhattisgarh. These investigations have implicated politicians, bureaucrats, and others in multiple “scams,” including those related to coal levy, liquor duty, and illegal online betting apps.

As the state’s assembly elections are in progress, these allegations have raised concerns about potential corruption in the political landscape. Chhattisgarh’s 90-member assembly is set to vote in two phases on November 7 and November 17, with the counting of votes scheduled for December 3. The political competition primarily involves the Congress and the BJP.

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