Seven held for diverting CSD items in open market

Hyderabad: The Rachakonda Police today claimed to have busted an alleged nexus between ex-servicemen and civilians involved in diverting subsidised goods meant for defence personnel to the open market.

Police arrested seven persons, including four ex-servicemen in connection with the case, said a release issued by the Rachakonda Police Commissionerate. Sleuths of the Special Operation Team (Malkajgiri Zone) raided a godown in Neredmet Police Station limits here where the accused used to store groceries purchased from CSD canteens to be later sold to traders at higher rates, said the release.

S Srinivas, who is running a grocery store in Old Alwal was arrested along with A Kantha Rao, E Laxmaiah, B Varuganti, M Srinivasulu (all ex-servicemen) besides two others G Veera Basker Reddy (who is also into grocery business) and a driver of an auto-trolley B Devidas, it said.

Police seized 129 cartons of CSD canteen groceries worth Rs 5 lakhs, 15 CSD Canteen Smart Cards, from the possession of the arrested accused, said the release. Explaining the modus-operandi of the racket, police claimed that Srinivas knows some ex-servicemen residing in the nearby localities.

These former defence personnel used to purchase groceries and other electronic items from the CSD canteens and sell them to him. Srinivas paid them 22 per cent extra on the canteen bill, said the release. "These former officials even used canteen cards of men who are presently in service to procure goods for Srinivas," police said.