ED Files Prosecution Complaint in PDS Scam, Targets Properties Worth Rs. 32.44 Crore
In a significant development, the Directorate of Enforcement (ED) has lodged a Prosecution Complaint (PC) on December 12, 2023, against Bakibur Rahaman, NPG Rice Mill Pvt. Ltd., and Jyoti Priya Mallick, the current Minister-In-Charge of Forest Affairs and Non-Conventional and Renewable Energy Sources of the Government of West Bengal. The case, filed under the Prevention of Money Laundering Act (PMLA), is related to the alleged siphoning of PDS ration to the open market, mixing of wheat flour in fresh flour, and bogus paddy procurement.
The Prosecution complaint, presented before the Learned Special PMLA Court in Kolkata, seeks the confiscation of properties amounting to Rs. 32.44 Crore, alleged to be acquired from the Proceeds of Crime (PoC). These properties include 101 immovable properties and balances in various bank accounts. The court acknowledged the PC on December 12, 2023.
The ED’s investigation originated from multiple FIRs registered by the West Bengal Police, exposing unauthorized possession of PDS ration by private individuals and involvement in bogus paddy procurement. The investigation revealed three distinct modus operandi associated with the alleged generation of Proceeds of Crime in the PDS scam:
- Siphoning of PDS Atta/Wheat Flour: NPG Rice Mill Pvt. Ltd., in collaboration with PDS distributors, PDS dealers, and others, allegedly siphoned off approximately 25.55% of the total atta required for delivery to PDS distributors, causing substantial losses to government funds and intended PDS beneficiaries.
- Atta Mixing Scam: NPG Rice Mill Pvt. Ltd. was found buying back atta delivered to various dealers through middlemen and agents, subsequently mixing it with fresh PDS atta. This modus operandi not only generated proceeds of crime but also compromised the quality of atta delivered.
- Fake Paddy Procurement: Under the guise of paddy procurement in the name of fake farmers, Bakibur Rahaman controlled many cooperative societies. By using the names of his employees and relatives as “fake farmers,” payments at the Minimum Support Price (MSP) were received in their bank accounts.
The investigation revealed that Bakibur Rahaman laundered the proceeds of crime through various companies, invested in immovable properties, and transferred part of the PoC to companies allegedly under the control of Jyoti Priya Mallick.
As of now, proceeds of crime, including 101 immovable properties and Rs. 2.89 Crore in bank accounts, have been provisionally attached. Earlier, Rs. 16.87 Crore in certain bank accounts were frozen. Both Jyoti Priya Mallick and Bakibur Rahaman have been arrested under Section 19 of PMLA, 2002, and are currently under judicial custody.
The ED’s intensive investigation is ongoing, aiming to uncover more details in this complex web of financial wrongdoing.
