Thane, Feb 14: Authorities have uncovered a major black-marketing scandal at a Fair Price Shop (FPS) in the Anand Koliwada area of Mumbra in Thane District.
Following a series of consumer complaints and a subsequent departmental probe, the establishment has been sealed, and criminal charges have been filed against the management for the embezzlement of government-subsidised grain.
The investigation
Rationing Officer Rohit Rajaram Malkar confirmed that Shop No. 48 F-20 had been under surveillance following persistent reports from local cardholders. Consumers alleged that they were systematically being denied their government-mandated quota of food grains.
A discreet investigation conducted by a specialised departmental team revealed significant discrepancies between the recorded stock and actual distribution.
The scam quantified
The probe established that the shop’s owner, Parag Motiram Malvade, and the operator, Hemraj Shrikrishna Jaiswal, siphoned off a staggering 9,217 kilograms of rice. Instead of distributing this to eligible beneficiaries under the Public Distribution System (PDS), the duo allegedly diverted the stock to the open market for illegal sale.
Quantity Diverted: 9,217 kg of Rice
Government Rate: ₹41.73 per kg
Total Valuation of Fraud: ₹3,84,625
Legal and police action
Acting on a formal complaint from the Rationing Department, the Mumbra Police have registered a First Information Report (FIR) against Malvade and Jaiswal.
The accused face charges under Sections 3, 7, and 8 of the Essential Commodities Act, 1955, which deal with the contravention of government orders and the illegal hoarding of essential supplies.
The shop remains sealed as police and rationing officials continue their investigation into potential wider links within the local distribution network.
Crackdown on PDS malpractices
Mumbra, Kausa, and Diva currently house 75 ration shops, with 37 concentrated in the Mumbra-Kausa belt alone. This incident has prompted the department to issue a stern warning to all Fair Price Shop owners in the region.
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"It is mandatory to provide the full allotted quantity of rations to eligible beneficiaries," stated Officer Malkar. "Any irregularities will result in immediate sealing of the premises and rigorous legal action against the owners."
Authorities have urged citizens to remain vigilant and report any instances of under-measurement or grain diversion to the Rationing Department immediately.
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