ED arrests Ram Gopal Agarwal in ₹147 crore Chhattisgarh rice milling scam
Synopsis
The ED has arrested Ram Gopal Agarwal, alleged mastermind of a ₹147 crore extortion racket in Chhattisgarh's rice milling sector, where millers were forced to pay ₹20 per quintal in cash just to get their legally entitled incentive bills cleared — and those who refused had their bills deliberately held back.
Key Takeaways
The ED's Raipur Zonal Office arrested Ram Gopal Agarwal on 9 October 2025 under Section 19 of the PMLA, 2002 .
Agarwal is a key accused in the Chhattisgarh Custom Rice Milling Scam , involving alleged illegal collection of ₹147 crore from rice millers.
The syndicate allegedly charged millers ₹20 per quintal in cash to release incentive payments they were legally owed; millers who refused had their bills withheld.
Funds were allegedly routed through Roshan Chandrakar , then Treasurer of the Chhattisgarh State Rice Millers Association , who reported district-wise collections to Agarwal.
The alleged extortion ran from December 2022 to July 2023 ; the Special Court (PMLA), Raipur granted the ED five days of custody.
The case was triggered by an Income Tax Department complaint; an FIR was also filed by the ACB/EOW, Raipur .
The Directorate of Enforcement (ED) has arrested Ram Gopal Agarwal, a key accused in the Chhattisgarh Custom Rice Milling Scam, in connection with the alleged illegal collection of ₹147 crore from rice millers in exchange for clearing their incentive bills. The arrest was made on 9 October 2025 under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002, by the ED's Raipur Zonal Office.
The Special Court (PMLA), Raipur, subsequently granted the ED five days of custody over Agarwal, allowing investigators to press forward with a case that has implicated a network of association officials, millers, and state agency personnel.
How the Scam Allegedly Operated
According to the ED, the fraud was enabled after the special incentive for custom rice milling was raised from ₹40 to ₹120 per quintal for the Kharif season 2021-22. A syndicate allegedly comprising office-bearers of the Chhattisgarh State Rice Millers Association and officials of MARKFED then began extorting cash from rice millers at the rate of ₹20 per quintal — effectively charging millers for the release of payments they were legally entitled to receive.
Millers who refused to pay were reportedly penalised: their bills were deliberately withheld, creating a coercive dynamic that forced compliance. In this manner, approximately ₹147 crore was allegedly collected between December 2022 and July 2023, constituting proceeds of crime under the PMLA, according to the agency.
Agarwal's Alleged Role
Investigators say Agarwal was central to organising, supervising, and controlling the cash collection network. He allegedly relayed instructions to office-bearers of the Rice Millers Association, who coordinated collections across districts. The cash gathered from different districts was reportedly handed over to Roshan Chandrakar, who was then serving as Treasurer of the Association. Chandrakar is alleged to have regularly provided district-wise collection figures to Agarwal for verification, after which the funds were purportedly delivered to persons nominated by him.
During the course of the investigation, Agarwal was found to be evasive and non-cooperative, and allegedly failed to disclose relevant information regarding the collection, handling, and utilisation of the proceeds of crime, the ED stated.
Legal and Investigative Background
The ED probe was initiated on the basis of a prosecution complaint filed by the Income Tax Department under various sections of the Indian Penal Code (IPC), 1860. An FIR was subsequently registered by the Anti-Corruption Bureau and Economic Offences Wing (ACB/EOW), Raipur, under corresponding sections of the IPC and the Prevention of Corruption Act, 1988.
This case is part of a broader scrutiny of procurement irregularities within Chhattisgarh's state-managed food supply chain. The use of a professional association as an alleged conduit for systematic extortion marks a structurally distinctive pattern in the state's agri-sector corruption landscape.
What Happens Next
With five days of ED custody granted, investigators are expected to probe the downstream flow of the alleged proceeds — tracing where the ₹147 crore was delivered and how it may have been laundered. Further arrests and asset attachments could follow if the agency establishes a clearer money trail. The case will continue before the Special Court (PMLA), Raipur.
Point of View
With a registered trade association allegedly doubling as a cash collection network. That millers who refused to pay had their bills deliberately withheld points to institutional capture at multiple levels — not rogue individuals acting alone. The ED's five-day custody window will be critical: if investigators can trace the downstream recipients of the ₹147 crore, this case could implicate figures well beyond the association. The involvement of MARKFED officials, if proven, also raises questions about oversight failures in Chhattisgarh's state procurement machinery that go beyond this single season.
NationPress
12 Oct 2026
Frequently Asked Questions
Who is Ram Gopal Agarwal and why was he arrested by the ED?
Ram Gopal Agarwal is a key accused in the Chhattisgarh Custom Rice Milling Scam, arrested by the ED on 9 October 2025 under Section 19 of the PMLA, 2002. He is alleged to have organised, supervised, and controlled the illegal collection of approximately ₹147 crore from rice millers between December 2022 and July 2023.
What is the Chhattisgarh Custom Rice Milling Scam?
It is an alleged extortion racket in which a syndicate of office-bearers from the Chhattisgarh State Rice Millers Association and MARKFED officials purportedly collected ₹20 per quintal in cash from rice millers to clear their incentive bills. Millers who refused payment reportedly had their bills deliberately withheld, and around ₹147 crore was allegedly collected over roughly eight months.
How much custody has the ED been granted over Agarwal?
The Special Court (PMLA) in Raipur granted the ED five days of custody over Ram Gopal Agarwal following his arrest on 9 October 2025. This period is being used to trace the flow of the alleged proceeds of crime.
What is the legal basis for the ED's investigation?
The ED probe was initiated on the basis of a prosecution complaint by the Income Tax Department under various sections of the IPC, 1860. An FIR was also registered by the Anti-Corruption Bureau and Economic Offences Wing (ACB/EOW), Raipur, under the IPC and the Prevention of Corruption Act, 1988.
Who else is named in the Chhattisgarh rice milling scam?
Roshan Chandrakar, then Treasurer of the Chhattisgarh State Rice Millers Association, is named in the ED's account as the person who received district-wise cash collections and reported collection figures to Agarwal. Officials of MARKFED are also alleged to have been part of the syndicate, according to the agency.
