The National Anti-Corruption Commission said it has found grounds to press charges and initiate impeachment proceedings against Yingluck Shinawatra for alleged negligence and dereliction of duty in the rice scheme which has cost the country dearly, its spokesman Wicha Mahakhun said.
The agency summoned Yingluck to acknowledge the charges on February 27.
The decision was made after the agency's investigation found evidence, both through witnesses and documents, that she had been warned by many organisations of possible massive damage and corruption in the scheme, The Nation reported.
A large number of rice farmers who entered the programme have not yet received payment and are now in serious financial difficulty.
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Even the NACC warned in a written document that the scheme could cause massive corruption in every stage of the process.
Yingluck was informed of the corruption that was occurring in the project during debates in the Parliament.
The chairman of sub-committee on rice pledging audit said the scheme had caused losses of about Thai baht 200 billion.
Despite these factors, Yingluck insisted on continuing with the programme and this, Wicha said, clearly demonstrated her negligence to duty resulting in severe damage to the country.
The move by the NACC has compounded Yingluck's woes as she faces opposition Democrat Party-backed protesters who have been rallying in Bangkok since November to try to oust her.
They view Yingluck as a proxy for her elder brother Thaksin Shinawatra, a former premier who was toppled in a military coup in 2006.