Aligarh — In a sweeping enforcement breakthrough, the Uttar Pradesh Special Task Force (STF) has uncovered a major petrol-adulteration racket operating undetected for nearly five years out of a hidden factory inside Aligarh city limits. Investigators say the illicit fuel was supplied not only across districts within the state but to multiple states, raising questions about regulatory oversight and possible official complicity.
The factory — allegedly run by Kanhaiya Lal Varshney and his associate Sarvesh Kumar — mixed crude oil with low-grade solvents and chemical additives to manufacture adulterated petrol and diesel. Despite being located in a populated area, the unit operated behind locked gates with no signage, allowing tankers to enter and exit discreetly throughout the day.
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A Tip-Off Triggered the Crackdown
The operation came to light after the Uttar Pradesh Petroleum Traders Association submitted a formal complaint to the Chief Minister alleging widespread adulteration in the fuel supply chain. Acting on this, the STF Gautam Buddh Nagar unit raided Chandra Filling Station in Firozabad on November 14, detaining two individuals, Saddam and Chandra Vijay.
Questioning revealed that the adulterated fuel had been sourced directly from a unit in Aligarh’s Parag Paints & Chemical Factory, prompting the late-night STF raid.
Inside the facility, investigators detained Varshney and Kumar and documented tankers, chemical drums, and refinery-like equipment used to mix crude oil imported from Gujarat.
Factory Operated “Hidden in Plain Sight”
Local residents told investigators that they had no idea a large-scale fuel-mixing plant was functioning next door. The factory gates opened solely for tanker movement; no workers or visitors were ever seen entering on foot. The secrecy, STF officials say, was deliberate and effective.
Despite the unit functioning for nearly half a decade, neither the District Supply Department nor police authorities flagged any irregularities, a lapse now under investigation.
Doubt Over Supply Department’s Role
According to STF sources, two officials from the district supply department allegedly maintained “close proximity” with the factory operator. This has intensified suspicion that the unit enjoyed administrative protection, enabling it to supply adulterated petrol and diesel across state borders without detection.
Officials confirmed that the factory’s petrochemical–explosive licence was in the names of Varshney’s wife Chitra and son Gaurav. With the racket exposed, the licences may now face cancellation.
Political and Bureaucratic Links Raise Questions
Investigators found multiple social-media photographs showing Varshney with leaders from ruling and opposition parties, as well as bureaucrats. His longstanding influence over the historic Aligarh Numaish fair contracts, which he reportedly held across different political administrations, is now a focal point of inquiry.
Officials say the political and administrative connections behind the operation may have helped it evade detection for years.
Quick Bail Sparks Public Debate
All seven accused arrested in the case were released on bail within 24 hours under provisions where the maximum punishment is under seven years. The swift arrest–exposé–bail cycle has triggered public questions about the seriousness of the charges and the broader system of accountability.
The case was registered at Thana Eka, Firozabad under Section 318(4) of the Bharatiya Nyaya Sanhita (BNS) and Sections 3/7 of the Essential Commodities Act.
Licences Under Review, Further Action Expected
District Supply Officer Satyaveer Singh stated that all licences, documents and permissions related to Parag Paints & Chemicals will be re-examined. Authorities emphasized that the factory was officially licensed to trade solvents, not adulterate fuel.
Officials expect further administrative and possibly political fallout once the investigation uncovers the full extent of the racket’s beneficiaries and enablers.
