ED arrests man in ₹147 crore Chhattisgarh rice milling scam

This is a press release issued by the Directorate of Enforcement (ED) Raipur Zonal Office announcing the arrest of Ram Gopal Agarwal under the Prevention of Money Laundering Act (PMLA), 2002, in connection with the Chhattisgarh Custom Rice Milling Scam. It matters to citizens as it details the alleged illegal collection of approximately Rs. 147 crore from rice millers and the specific role of the accused in organizing these collections.

Who it concerns: Ram Gopal Agarwal (accused), the Chhattisgarh State Rice Millers Association, MARKFED officials, rice millers in Chhattisgarh, the Income Tax Department, and the ACB/EOW, Raipur.

What the ED says it did

• Ram Gopal Agarwal was arrested on 09.10.2026 under Section 19 of the PMLA, 2002.
• The Hon'ble Special Court (PMLA), Raipur, granted 5 days of ED custody to the accused.
• The investigation revealed that the special incentive for custom rice milling was increased from Rs. 40 to Rs. 120 per quintal for Kharif season 2021-22.
• A syndicate comprising office bearers of the Chhattisgarh State Rice Millers Association and MARKFED officials allegedly collected Rs. 20 per quintal from rice millers against the release of incentive payments.
• Bills of rice millers who refused to pay the illegal amount were deliberately withheld.
• Approximately Rs. 147 crore was illegally collected between December 2022 and July 2023, constituting proceeds of crime under PMLA, 2002.
• Ram Gopal Agarwal is alleged to have played a key role in organizing, supervising, and controlling the illegal collection and conveying instructions through association office bearers.
• Cash collected was reported to Roshan Chandrakar, the then Treasurer of the Association, who provided district-wise details to Agarwal for verification.
• The ED investigation was initiated based on a Prosecution Complaint filed by the Income Tax Department under the IPC, 1860.
• An FIR was registered by ACB/EOW, Raipur, under the IPC, 1860 and the Prevention of Corruption Act, 1988.

Also in the document

• The ED stated that Ram Gopal Agarwal was found to be evasive and non-cooperative during investigation and failed to disclose information regarding the collection, handling, and utilization of the proceeds of crime.
• The illegal collection period is specified as December 2022 to July 2023.