The Directorate of Enforcement (ED), Patna Zonal Office, has provisionally attached immovable properties worth ₹1,09,26,808 (₹1.09 crore) in Sheikhpura district of Bihar, in connection with a money laundering probe involving M/s Arena Food and Agro Industries Private Limited. The attachment was carried out on 7 October 2026 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

Who the Properties Belong To

According to the ED, the attached properties belong to the company and individuals associated with it. These include Shreekrishan Kumar, a director of the company; Shobha Kumari, wife of Radhey Sharma; and Kanhaiya Kumar and Kuber Kashyap, both sons of Radhey Sharma. The ED's investigation was initiated on the basis of an FIR registered against Radhey Sharma, who is identified as a director of M/s Arena Agro Industries Pvt. Ltd., under various provisions of the Indian Penal Code (IPC).

The Alleged Rice Mill Fraud

According to the FIR and information received from the predicate agency, the company procured 63,092.45 quintals of paddy from the Bihar State Food Corporation (BSFC) during 2012–13. Under the terms of the agreement, the company was required to supply Custom Milled Rice (CMR) equivalent to 67 per cent of the paddy procured — amounting to 42,271.94 quintals — by 30 December 2013.

The ED alleged that the company supplied only 19,170 quintals of CMR, leaving a shortfall of 23,101.94 quintals. This alleged shortfall resulted in a loss of ₹5,00,28,637.19 (₹5.00 crore) to the government exchequer, calculated at ₹2,165.56 per quintal, according to the agency.

Trail of Proceeds of Crime

The agency further stated that ₹1.21 crore was subsequently paid by M/s Arena Food and Agro Industries Pvt. Ltd. to the BSFC, leaving an outstanding amount of approximately ₹3.79 crore. The ED has treated this outstanding amount as proceeds of crime in the case.

Investigators allegedly found that the CMR was sold in the open market and the corresponding funds were not returned to the Bihar government, despite the registration of the FIR and repeated reminders issued by the BSFC. The agency alleged that proceeds generated through the criminal activity were subsequently used in the business and dissipated.

Notably, the investigation also allegedly found that funds from the company's bank accounts were transferred to accounts belonging to directors, family members of the principal accused, and entities linked to his sons — a pattern investigators say was used to obscure the money trail.

What Happens Next

The ED confirmed that further investigation into the case is underway. Provisional attachments under PMLA are typically followed by adjudication proceedings before the Adjudicating Authority, where the accused are given an opportunity to contest the attachment. If confirmed, the properties can be confiscated by the government. This case is part of a broader pattern of ED actions against alleged misappropriation of government food-grain schemes across multiple states.