ED Raids In West Bengal: Uncovering The PDS Scam

The Enforcement Directorate is conducting raids across West Bengal as part of a money laundering investigation into a significant Public Distribution System (PDS) scam involving the illegal diversion of subsidised wheat.

Photograph: ANI on X

Key Points

The Enforcement Directorate raided several locations in West Bengal concerning a money laundering investigation into an alleged PDS scam.
The raids targeted suppliers and exporters in Kolkata, Burdwan, and Habra, including premises linked to Niranjan Chandra Saha.
The money laundering case originates from an FIR alleging the diversion of Public Distribution System (PDS) wheat meant for welfare schemes.
Accusations include procuring wheat at low prices through unauthorised channels and illegally diverting it from the supply chain.
Former West Bengal food minister Jyoti Priya Mallick has been arrested in connection with the PDS scam.

The Enforcement Directorate on Saturday raided several locations in poll-bound West Bengal as part of its money laundering investigation into an alleged PDS scam, officials said.

Searches were underway at about nine premises of suppliers and exporters in Kolkata, Burdwan, and Habra, including Niranjan Chandra Saha's, they said.

The action is being carried out under the provisions of the Prevention of Money Laundering Act.

Details Of The PDS Scam Investigation

The central agency conducted raids in this case earlier, too.

The state is scheduled to go for the second phase of the assembly polls on April 29. The first phase of voting was held on April 23.

Allegations Of Wheat Diversion And Illegal Practices

The money laundering case stems from an October 2020 FIR registered by the Basirhat police on the complaint of a deputy commissioner of customs (land customs station) at Ghojadanga, alleging large-scale diversion of Public Distribution System (PDS) wheat meant for welfare schemes.

The wheat was procured at low prices through unauthorised channels, in collusion with suppliers, licensed distributors, dealers, and middlemen.

Large quantities were illegally diverted from the supply chain and aggregated at multiple locations, the ED has claimed.

Efforts To Conceal The Origin Of Illegally Diverted Wheat

To conceal its origin, the accused removed or reversed the original gunny bags bearing Food Corporation of India (FCI) and state government markings and refilled them, thereby hiding identifying features and passing off the PDS wheat as legitimate stock for sale in the open market or export, it has said.

It has arrested former West Bengal food minister Jyoti Priya Mallick and some others in this case.

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