A political tempest has erupted in telangana over paddy procurement, with bjp leader A Maheshwar reddy and BRS working president KT Rama Rao claiming a Rs 800 crore to Rs 1,000 crore fraud committed by the congress administration in the worldwide auction of paddy beginning with the Rabi 2022-23 marketing season. Civil Supplies minister N reddy NALAMADA' target='_blank' title='uttam kumar reddy-Latest Updates, Photos, Videos are a click away, CLICK NOW'>uttam kumar reddy has denied any misconduct.

The allegations are based on global tenders to auction rice that has been stored in rice mills since the Rabi 2022-23 marketing season. Over 35 lakh tonnes of paddy were meant to be delivered to the FCI but are still languishing at the mills. The paddy was destroyed owing to unseasonal rainfall, yet it was acquired by the then-government. The paddy became discoloured and sprouted while in the rice mills, and it was declared unsuitable for human consumption.

Four firms won worldwide contracts to acquire paddy from the telangana State Civil Supplies Corporation (TGSCSC) for Rs 2,007 per quintal, according to the agreement. The timeframe for the four businesses to remove the paddy from the mills after payment was 90 days, which has passed.
The problem arose after BRS working presidents KT Rama Rao and Maheshwar reddy revealed memoranda of understanding between these enterprises and other rice mills, in which the price for acquiring paddy was Rs 2,229 per quintal.

The opposition leaders claim that the extra amount asked by the four businesses from the rice millers is where the State government has been attempting to extort money from the rice millers in the sum of Rs 700 to Rs 800 crore, which they have labelled as'scam money.'
Uttam Kumar denied the accusation, challenging the State government's involvement in subsequent transactions after the four corporations agreed to pay Rs 2,007 per quintal paddy.
KTR, who stated that not even 20% of those lots of paddy had been lifted yet, asked that the State government issue a white document detailing how much paddy had been lifted by these four businesses to far.

Even Maheshwar reddy inquired as to how the four businesses were allowing the rice millers with whom they had entered into an MOU time to pay for the paddy in four tranches after the deadline for lifting paddy from the mills had elapsed.

"On the one hand, the civil supply department has written to the FCI to extend the deadline for the delivery of custom milled rice from Rabi 2022-23, which the Centre has provided until May 15. On the other side, the four corporations in issue have not taken the paddy from the mills as agreed, but are giving the rice millers until september to pay the cash. So, did the four firms know they were going to obtain another extension to pay for the paddy?" he asked reporters at the bjp party office on Monday.

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