Vigilance officials in Nirmal district have unearthed large‑scale diversion of Custom‑Milled Rice (CMR) by rice millers, with defaults amounting to Rs 700 crore in the 2023 and 2024 seasons. About 50 millers are said to have misappropriated stocks, prompting arrests, raids, and statewide audits.
Published Date – 28 August 2026, 07:13 PM
Nirmal: Despite registration of cases, some rice millers in the district continue to divert Custom-Milled Rice (CMR) to the black market and earn huge profits.
In the latest instance, about 50 rice millers out of a total 76 millers are said to have defaulted on the CMR of 2023 and 2024 seasons in the district. The value of the rice is stated to be around Rs 700 crore. The diversion was exposed during physical verification of the rice supplied and the stocks of paddy allotted by the government.
In the wake of alleged rampant diversion, the sleuths of vigilance and enforcement departments began widespread audits and conducted physical verifications across the state. The sleuths found the misappropriation of the rice by the millers. They initiated action against the erring millers in different parts of the district.
Officials said that six millers were already arrested in this connection and criminal cases were registered against them. They disclosed that both Mudhole and Lokeshwaram mandals witnessed the highest number of diversion cases. They suspected the millers might have diverted the rice to neighbouring Maharashtra.
Officials said a case was recently registered against a miller who failed to handover rice worth Rs 8.50 crore and another miller for defaulting CMR to the tune of Rs 10.61 crore at Sathgaon village of Lokeshwaram mandal. Another miller was booked for allegedly diverting the rice valued at Rs 25.18 crore in Swarna village a few days back.
On August 19, former Khanapur MLA Ajmeera Rekha Naik was booked on charges of diverting paddy allotted under the CMR on Wednesday. The value of the diverted paddy was calculated to be Rs 40.96 crore. Two other mills located in Nagar village were involved in defaulting on the rice worth Rs 47 crore.
Meanwhile, the errant millers are said to be absconding following the criminal cases and raids by the vigilance and enforcement officials. They are reportedly switched off mobile phones to evade cases and arrests. Cases were registered against 72 millers for diverting, while 32 millers were already arrested across Telangana. A search was launched to nab 46 accused millers.
