Panvel city police station have seized 110 tonnes of government rice worth Rs 33 lakh before it could be sold in the open market, an official said on Saturday.
According to the police officials the rice was meant to be distributed among the poor in view of the COVID-19 pandemic.
A case has been registered against three persons at Panvel city police station.
The local police along with revenue officials acted upon a tip-off and raided the godown at Palaspe on Friday and seized the grain stock, he said.
The investigation report says that the seized rice was illegally transported from Barshi in Solapur district in four containers, he said.
A case has been registered against Bhimshankar Khade, Iqbal Kazi and Laxman Chandra Patel who are yet to be arrested.
Khade had a cheating case pending against him at Bhoiwada police station in central Mumbai, the official added.