Haryana: Why number of defaulter rice mills is rising in Karnal

By Parveen Arora

Serious discrepancies have come to light during inspections of 58 rice mills that defaulted between 2013-14 and 2024-25 by not delivering custom-milled rice (CMR) worth around Rs 520 crore to the government. The inspection was carried out by a three-member committee constituted by DC Uttam Singh to examine the status of properties owned by defaulter millers and their guarantors.

The committee, comprising tehsildar Sandeep Sharma, District Revenue Accountant Rakesh Mittal, and a representative of the Food, Civil Supplies and Consumer Affairs Department, conducted the inspections.

As per the findings, 16 mills had defaulted in the 2013–14 season. However, no attachment proceedings were initiated against six of the mills. The delay in action allegedly allowed one property to be sold.

The inquiry further revealed that paddy was allotted to some mills whose land was already linked to defaulting units. Despite this, millers reportedly managed to secure fresh allocations by changing the names of their units. The failure to timely attach and auction the properties enabled defaulters to continue operations under new identities, said Manish Kumar Yadav, District Revenue Officer (DRO).

Irregularities were also flagged in a case in Nilokheri, where the department cited ongoing arbitration as the reason for not attaching the property. However, physical verification indicated that the original owners had transferred ownership, and another unit was operating at the site, he said.

In another case, a mill that defaulted in 2013–14 with dues of about Rs 7.75 crore was found to have been sold around 2019–20. While the department said the mill owners had been jailed and later released, inspections showed that the land had since been levelled and the department no longer held possession, he said.

The report further indicated that while FIRs were registered in some cases and initial steps for property attachment were taken, auctions were not conducted to recover losses. In some cases, recovery could not be done as mills had been operating on leased properties, leaving no assets in the names of the defaulters, he said.

Sources in the department said in some cases, the department had attached the properties and registration of land was done by the Revenue Department without taking consent from the department.

The DC has directed the District Food Supplies Controller (DFSC) to submit a report, detailing how many properties have been attached and what action has been taken so far. He has also sought an account of officials and employees involved in the allotment of paddy to already defaulting mills, along with details of properties owned by defaulters and their guarantors, to facilitate the auction.

“The DFSC has been asked to submit a report to fix accountability and initiate auction,” said the DC.

This article has been republished from The Tribune.