RAIPUR, October 12, 2026: The Directorate of Enforcement (ED), Raipur Zonal Office, has arrested Congress leader Ram Gopal Agarwal under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002, in connection with the Chhattisgarh custom milling scam.
The case involves the alleged illegal collection of approximately ₹147 crore from rice millers. A special PMLA court in Raipur has remanded the accused to five days of ED custody.
The central agency launched its probe following a prosecution complaint filed by the Income Tax Department under various sections of the Indian Penal Code, 1860. Subsequently, the Anti-Corruption Bureau and Economic Offences Wing (ACB/EOW), Raipur, registered a first information report (FIR) under the IPC and the Prevention of Corruption Act, 1988.
The investigation revealed that the special incentive for custom rice milling was increased from ₹40 to ₹120 per quintal for the 2021-22 kharif season. A syndicate comprising office-bearers of the Chhattisgarh State Rice Millers Association and officials of MARKFED allegedly collected cash from rice millers at the rate of ₹20 per quintal for releasing incentive payments.
According to the investigation, the bills of millers who refused to pay the illegal amount were deliberately withheld. This alleged practice generated approximately ₹147 crore between December 2022 and July 2023, which the agency identified as proceeds of crime under the PMLA.
Further investigation established that Ram Gopal Agarwal allegedly played a central role in organizing, supervising and controlling the illegal collections. Officials stated that he conveyed instructions for collecting cash through office-bearers of the Rice Millers Association.
The money collected from different districts was reportedly routed to Roshan Chandrakar, the then treasurer of the association. He allegedly provided district-wise details of the collections to Agarwal for verification. The accumulated cash was subsequently handed over to individuals nominated by him, according to the investigation.
Investigators also stated that Agarwal remained evasive and non-cooperative during questioning and did not disclose relevant details concerning the collection, handling and utilization of the alleged crime proceeds.
Following his arrest on October 9, 2026, Agarwal was produced before the special court, which remanded him to five days of ED custody for further investigation.
