NEW DELHI: The Central Bureau of Investigation (CBI) on Monday carried out searches at 11 places across four States, in a move against certain Food Corporation of India (FCI) officials for allegedly purchasing substandard rice and thus causing a Rs. 320-crore loss to the exchequer, sources said.

Eight places in Punjab and one place each in Bihar, Uttar Pradesh and Andhra Pradesh were searched after the CBI registered three cases against more than 50 officials including senior regional manager K. Shiva Prasad, an IAS officer.

The cases were registered against the officials based in Ferozepur, Bhatinda, Sangrur and Faridkot under the Indian Penal Code and the Prevention of Corruption Act.

In the CBI checks conducted at the FCI godowns in September and October last, 451 samples were collected from 12 locations in Punjab and sent to the Central Grain Analysis Laboratory. It found that 97 per cent of the samples were substandard. Of this 97 per cent, 20 per cent was unfit for human consumption.

Rice was procured from various millers in Punjab — the major producer — during the Kharif season of 2004-05. The accused officials allegedly procured a huge quantum at the cost of "A" grade rice, which is purchased by the FCI for distribution to various States. The CBI alleged that the rice procured under the "A" category was not only substandard but also Below Rejection Level.

Under FCI rules, technical assistants, assistant managers (quality control) and district managers were required to test a percentage of the total accepted quantity of rice for quality. But in the Punjab region, this exercise was done only on paper and very substandard rice procured at the cost of the "A'' grade product, the CBI alleged.

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