ED Conducts Raids in West Bengal Over Alleged PDS Scam
The Enforcement Directorate has initiated raids in West Bengal as part of an investigation into a money laundering case related to an alleged Public Distribution System scam. The operation targets multiple locations, including Kolkata and Bardhaman, focusing on suppliers and exporters involved in the manipulation of wheat intended for welfare schemes. This investigation follows a complaint filed in 2020, alleging significant fraud in the PDS. Several arrests have been made, including that of a former food minister, as authorities uncover a scheme to sell PDS wheat in the open market. Read on for more details about this unfolding case.
| Apr 25, 2026, 10:03 IST
Enforcement Directorate's Actions in West Bengal
The Enforcement Directorate (ED) has launched a series of raids across various locations in West Bengal on Saturday as part of an investigation into money laundering linked to an alleged Public Distribution System (PDS) scam. Officials confirmed the operation, which is currently taking place in Kolkata, Bardhaman, and Habra, targeting around nine premises associated with suppliers and exporters, including Niranjan Chandra Saha.
This operation is being conducted under the provisions of the Prevention of Money Laundering Act. The central agency had previously executed similar raids in connection with this case. Notably, the second phase of voting for the state assembly elections is scheduled for April 29, following the first phase that took place on April 23.
The money laundering investigation stems from a First Information Report (FIR) filed in October 2020 by the Basirhat police, which was based on a complaint regarding the customs commissioner at the land customs station in Ghojadanga. The FIR alleges that there was significant manipulation of wheat intended for welfare schemes under the PDS. Wheat was reportedly purchased at lower prices through illegal means, involving collusion among suppliers, licensed distributors, dealers, and middlemen. The ED claims that large quantities of wheat were illicitly extracted from the supply chain and stockpiled at various locations.
To conceal the original source of the grain, the accused allegedly removed or flipped the original bags marked with the logos of the Food Corporation of India (FCI) and the state government, refilling them to disguise the identity markers. This allowed them to present PDS wheat as legitimate stock for sale in the open market or for export. Former West Bengal Food Minister Jyoti Priya Mallick and several others have been arrested in connection with this case.