The Enforcement Directorate (ED) has carried out a fresh round of searches in West Bengal as part of its ongoing investigation into a multi-crore Public Distribution System (PDS) scam allegedly linked to money laundering and the diversion of subsidised wheat. The action comes at a politically sensitive time, with the state in the midst of its second phase of Assembly elections.
Raids Target Suspected Network Behind Diversion of Subsidised Wheat
According to officials, the agency conducted coordinated raids on Saturday at around nine locations across Kolkata, Burdwan, and Habra. The premises reportedly belonged to suppliers, traders, and exporters suspected of being part of a wider network involved in the illegal diversion of government-subsidised wheat meant for welfare distribution.
The case originates from a 2020 FIR filed after allegations surfaced that wheat allocated under the PDS was being siphoned off and diverted into open markets and export channels. Investigators claim that grain procured at subsidised rates from government agencies was systematically rerouted through a network of suppliers, licensed dealers, and intermediaries.
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Documents, Digital Devices and Transaction Records Seized During Searches
The ED has alleged that large quantities of wheat were stored at multiple undisclosed locations, where their origin was concealed by tampering with packaging. In several instances, bags marked with Food Corporation of India (FCI) and state government identifiers were allegedly removed or altered, repacked, and sold or exported as legitimate stock.
The agency has already made arrests in the case, including former West Bengal food minister Jyoti Priya Mallick and others, indicating what officials describe as a deep-rooted, organised racket. The latest searches are aimed at strengthening evidence related to financial transactions and identifying the broader network of beneficiaries involved in the alleged scam.
During the raids, ED teams reportedly seized a large number of documents, digital devices, and transaction records from business establishments linked to the suspects. These materials are now being analysed to trace the flow of funds and establish links between suppliers, traders, and suspected laundering channels.
ED Probes Layered Banking Trails and Laundering Channels
Officials said the investigation is also focusing on banking operations and digital payment trails to determine how proceeds of crime were routed through multiple accounts to obscure their origin. The agency suspects that layered transactions were used to integrate illicit gains into the formal economy.
The timing of the operation, coinciding with the election period, has added a political dimension to the case, though officials maintain that the action is strictly based on ongoing financial investigation inputs. Authorities have indicated that more raids are likely in the coming days, with the possibility of new names emerging as the probe expands.
Investigators believe the scam may not be limited to a few districts and could have a wider footprint across the state. There are also indications that local-level operatives and influential intermediaries may have played a role in diverting subsidised grains.
Suppliers and Intermediaries Come Under the Lens
The ED is expected to initiate further steps, including freezing bank accounts and attaching properties suspected of being linked to the proceeds of crime. Officials are also examining whether additional entities outside West Bengal were involved in the supply chain or financial routing.
Experts note that large-scale welfare schemes such as the PDS remain vulnerable to leakage and manipulation in the absence of robust monitoring systems. Strengthening supply chain tracking and digitisation is being seen as key to preventing such diversion in the future.
The investigation is currently at a critical stage, with agencies compiling evidence to establish the full extent of the alleged network. Authorities have indicated that a comprehensive chargesheet will be filed once financial linkages are fully mapped and corroborated with seized material.
As the probe continues, the case is expected to have wider implications for both administrative oversight of welfare distribution systems and the regulation of commodity supply chains in the state.
