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Karnal's Multi-Crore Paddy Procurement Scandal: A Deep Dive into the Unraveling Deception

  • Nishadil
  • February 18, 2026
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  • 3 minutes read
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Karnal's Multi-Crore Paddy Procurement Scandal: A Deep Dive into the Unraveling Deception

Former DFSC and Three Officials Arrested in Karnal Paddy Procurement Scam as Investigation Widens

Four government officials, including a former District Food and Supplies Controller, have been arrested in connection with a multi-crore paddy procurement scam in Karnal, Haryana, signaling a significant breakthrough in the ongoing probe into alleged collusion with defaulting rice mill owners.

It seems the long arm of the law is finally catching up with those allegedly involved in the massive paddy procurement scam that has plagued Karnal, Haryana. Just recently, four government officials, including Surender Singh, who once held the crucial position of District Food and Supplies Controller (DFSC), were taken into custody. This development marks a pretty significant turn in the investigation into what's believed to be a multi-crore embezzlement of public funds.

The arrests, made by the special investigation team (SIT) over the past few days, also include Sunil Dutt, who was the District Assistant Food and Supplies Officer (DAFSO) at the time, alongside accountant Balwinder Singh and auditor Surjit Singh. All of them are facing serious charges under various sections of the Indian Penal Code, including criminal conspiracy, breach of trust, and fraud. And you know, it’s not just officials; the net has also tightened around Arvind Singla, who owns two rice mills implicated in the scandal – he too has been arrested.

So, what exactly happened here? Well, the core of the scam revolves around irregularities in the procurement of paddy and, more critically, the failure of several rice mills to deliver their custom milled rice (CMR) back to the government. You see, these mills receive paddy from the state, mill it, and are then supposed to return a set quantity of rice. But in this case, a number of them simply didn't, causing a substantial loss to the state exchequer. The allegations suggest that these officials, instead of recovering the outstanding amounts or taking appropriate action against the defaulting mills, actually colluded with the owners.

The FIR in this case was originally registered back on October 18, 2023, based on a complaint lodged by the Haryana State Federation of Co-operative Sugar Mills Ltd., or Sugarfed. The complaint laid out a pretty clear picture: funds were apparently released to mill owners who hadn't delivered the CMR, and then, to add insult to injury, these owners absconded. It's a classic case of public money being siphoned off, leaving the state holding the bag.

Interestingly, the investigation isn't stopping here. Sources close to the SIT hint that the probe could very well extend to higher echelons. There's even a mention of a retired director general of food, civil supplies, and consumer affairs, DRK Yadav, whose alleged involvement is reportedly being looked into. It just goes to show how deeply entrenched some of these corruption networks can be. This ongoing inquiry serves as a stark reminder of the continuous battle against corruption and the importance of accountability in public service.

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