Vigilance, CBI Bust Rs. 1,000-Crore AP Cotton Scam

The Vigilance department today nabbed 26 members of the Cotton Corporation of India in connection with a massive cotton purchase scam worth Rs. 1,000 crores that occurred in the Guntur district recently.

As per reports, 93 lakh quintals of cotton was bought illegally between the years 2014 and 2015 by members of the CCI throughout the State in 43 purchase centers. In Guntur alone, around 29 lakh quintals of cotton was purchased from 11 centers.

The accused CCI members allegedly disguised themselves as buyers, and pressurized farmers into selling cotton at throw away prices. The 26 have been chargesheeted and suspended, pending further inquiry. Among the 26 suspended are: Four deputy directors, 3 assistant directors and 19 businessmen.

Upon receiving a tip off from an insider source, the Vigilance department raided the CCI and found that around Rs. 450 crores was swindled in 2014. After looking at the extent of corruption, the department informed the Central Bureau of Investigation (CBI), who then conducted sting operations on the suspects and their aides at several CCI offices in Guntur, Prakasham and Kurnool.

The CBI said that it had gathered enough strong evidence to indict several top level officials. Ever since this statement, the accused have absconded.

After the CBI's investigation, several top market owners are claiming that as many as 65 CCI officials were involved, and needed to be suspended. As per sources, the CBI is also looking into making arrests once its report is out.