Punjab mandi head alleges wheat scam

The Punjab Mandi Board Chairman Ajmer Singh Lakhowal has claimed to have unearthed a Rs 25-crore scam involving two Ludhiana food-processing units, Bonn Breads and Cremica Foods.

Lakhowal said in January the FCI had supplied 13,000 tonnes of wheat to Bonn Breads and 30,000 tonnes to Cremica Foods at a highly subsidised rate of Rs 415 per quintal. These firms were to supply bread and biscuits for the UN's World Food Programme.

However, within a few days of the purchase, they allegedly sold it in the open market at a rate between Rs 900 and Rs 1,100 per quintal. He said the companies were not allowed to sell the wheat they got at subsidised rates in the open market.

Lakhowal also alleged that these companies were evading market fee, which was mandatory for the sale-purchase of wheat, causing losses worth lakhs of rupees to the Punjab Mandi Board.

However, the companies have denied the charges. One of the directors of Cremica Foods, Ajay Bector, has said they, along with Bonn Nutrients Pvt Ltd, would hold a Press conference tomorrow in this regard.

Lakhowal said Cremica (Mrs Bector Food Specialities Ltd) sold 46,450 quintals of wheat to Batala Oil and General Mill on various dates between February 23 and March 30. "While Bonn Nutrients Pvt Ltd, manufacturers of Bonn bread have sold 1,38,400 quintals of wheat to 13 different Chandigarh-based companies in last one year."

Lakhowal had personally conducted raids on the premises of the two manufacturing units.

A detailed report has been submitted to chief minister Parkash Singh Badal, who had asked the Food and Civil Supplies Director to conduct an inquiry into the matter.

He added that various legal options were being examined to proceed against the two companies.