Special Team to Investigate Supplyco’s ‘Sugar Fraud’; So far, 8 employees have been suspended

A special investigation team has been constituted to probe the alleged ‘sugar scam’ that has so far led to the suspension of eight Supplyco employees in Ernakulam district. The team comprises senior officials of the Civil Supplies Corporation, including its Vigilance wing, Supplyco sources said.

The team will investigate whether more people were involved in diverting sugar to a private company by abusing gift cards issued by Supplyco under its Onam scheme.

Seven employees were suspended on Tuesday in connection with a case involving alleged supply of subsidized sugar from Keerthi Nirmal’s Supplyco’s Perumbavoor warehouse.

Those suspended are Supplyco Head Office Deputy Manager Sajeev Paul, Arakkapady Maveli Store Manager Anju Vijayan, Thuravoor Maveli Store Manager Sandhya AS, Divya MR of Palissery Maveli Store, Soumini S. of Ponjassery Maveli Store, Manju Antony of Karukutta and S. Basilamgara Maveli. Furniture store.

The custodian in charge of the Maveli shops under the Perumbavoor depot, Rajeesh Raveendran, was earlier suspended in connection with the incident.

The private company was issued 1,000 coupons worth ₹1,000 under Supplyco’s Onam gift card scheme. Mr. Raveendran allegedly released non-subsidized sugar from the Perumbavoor warehouse to Supplyco outlets in Thuravoor, Palissery, Karukutty, Sreemoolanagaram, Ponjassery and Arakkapady to be supplied for the full value of the coupons. The sugar was subsequently charged at the dispensaries.

However, an inspection conducted by the Supplyco Vigilance officer found that the stock of sugar was being held back in the warehouse while the records showed otherwise.

The outlet’s employees were suspended for selling a large amount of sugar to a private company at a time when there was a significant difference between the market price of sugar and Supplyco’s price, and for irregular handling of stock.

Food and Civil Supplies Minister Anoop Jacob said such irregularities would not be tolerated and strict action would be taken against those responsible.

Published – 09 Sep 2026 21:39 IST