Panchkula: 2 partners of Luxmi Rice Industries booked for paddy milling fraud
Partners of Luxmi Rice Industries, Barwala, have been booked for cheating the Haryana State Warehousing Corporation. Despite receiving over 2,175 metric tons of paddy during the 2023–24 Kharif season, they failed to deliver the agreed quantity of rice. A shortfall of over 109 metric tons led to a case under IPC Sections 406 and 420.
Partners of M/s Luxmi Rice Industries, Barwala, have been booked for allegedly cheating the Haryana State Warehousing Corporation (HSWC) by failing to deliver the full quantity of rice due under a government milling agreement during the Kharif Marketing Season (KMS) 2023-24.
The case was registered after the company defaulted on delivering a significant portion of Custom Milled Rice (CMR) to the Food Corporation of India (FCI) despite receiving over 2175.3375 metric tons of paddy.
The manager of HSWC, Ambala, on March 12, lodged the complaint against rice mill partners — Deepak Kumar Gupta and Kailash Rani — accusing the firm of violating the terms of an agreement signed on October 15, 2023, between now-retired HSWC official Somnath and Deepak Kumar Gupta. As per the agreement, the mill was required to return 67.5% of the paddy received in the form of CMR.
However, by the delivery deadline of September 30, 2024, the firm had delivered only 1363.00 metric tons of CMR, against the required 1472.0509 metric tons, resulting in a shortfall of 109.0509 metric tons of CMR.
The HSWC has calculated that approximately ₹3,051,990 lakh is recoverable from the rice mill, after adjusting penalties and dues as of March 6, 2025.
Following the complaint, police have registered a case under Sections 406 (criminal breach of trust) and 420 (cheating) of the Indian Penal Code against partners Deepak Kumar Gupta and Kailash Rani
Despite multiple notices and reminders, neither the millers nor the guarantors—Rakesh Gupta of RR Agro Foods and Yashana Dhingra of Shree Krishna Rice Mill—have responded. The HSWC has also withheld payments due to Rakesh Gupta, who is a current miller under the same procurement season.
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Source : Hindustan Times
