Telangana officials raid rice dealers in Hyderabad over hoarding and scams

The Telangana Civil Supplies Department conducted surprise raids on retail and wholesale rice dealers in the Karmanghat area of Hyderabad to investigate allegations of hoarding, price manipulation, and tax evasion. Officials reported finding rice bags with incorrect weight declarations, such as bags labeled as 26kg that contained only 25kg, which authorities suggest is a tactic for tax evasion.

Investigations revealed a potential scam involving the Public Distribution System (PDS), where rice intended for subsidized distribution was allegedly being polished and repackaged under various branded names to be sold in the open market at prices between Rs 80 and Rs 100 per kilo. Some traders were also found operating without valid trade licenses.

Authorities have registered cases against traders for violations including operating without licenses and breaches of the Legal Metrology Act, 2009, such as using unverified or expired weighing scales. Several rice brands were seized, and samples have been collected for further examination as the investigation continues into the scale and origin of the racket.