Kolkata, April 27 The Directorate of Enforcement's Kolkata Zonal Office has intensified its crackdown on the large-scale diversion of Public Distribution System (PDS) commodities in West Bengal by conducting fresh searches at multiple locations.
On Saturday (April 25, 2026), the agency carried out searches at 11 premises across Kolkata, Habra and Burdwan linked to Niranjan Chandra Saha and others allegedly involved in the wheat scam.
These operations led to the seizure of Rs 18.4 lakh in cash, along with a significant volume of incriminating documents and digital evidence.
This latest action follows a search conducted earlier in the month on April 10 at 17 premises, which yielded Rs 30.9 lakh, taking the total cash seizure in this investigation to Rs 49.3 lakh, the agency said in a press statement.
The ongoing investigation stems from an initial police complaint filed at Basirhat Police Station by the Deputy Commissioner of Customs regarding the illegal diversion of welfare wheat.
The probe has uncovered a sophisticated criminal network involving exporters, wholesalers and transporters who systematically diverted over 5,000 metric tonnes of wheat meant for the poor, the agency said.
To conceal the fraud, the accused reportedly reversed gunny bags bearing government or Food Corporation of India markings and refilled them with PDS wheat to pass it off as legitimate stock for the open market or for export to Bangladesh.
Investigators found that the syndicate used falsified invoices and truck documents lacking essential details, such as correct vehicle numbers or authentic transaction trails, to give their operations a false appearance of lawful trade.
In a related but separate investigation into PDS irregularities concerning paddy and flour, the agency has uncovered an even more extensive network of illicit funds.
This branch of the probe found that rice mills and flour millers, in collusion with authorised distributors and cooperative societies, misappropriated proceeds by delivering reduced quantities of flour and blending old stock with fresh supplies.
The agency also found that payments for paddy were being routed into fictitious bank accounts opened in the names of farmers to fraudulently claim the Minimum Support Price.
As part of these broader investigations, the agency has already attached movable and immovable assets worth Rs 75 crore and arrested nine individuals, including high-profile figures such as Bakibur Rahman and former minister Jyoti Priya Mallick.
While chargesheets have been filed in the special court, the agency said it continues to pursue further leads to dismantle the entire network involved in generating proceeds of crime through the state welfare scheme.
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