The Enforcement Directorate on Friday lodged its first case against three rice mill owners in the Rs 1,400 crore alleged paddy scam of 2012-13 and 2013-14.

All the three mills are in Nalanda district.

"These rice mill owners took paddy worth Rs 3.5 crore from the state government and did not return rice after milling it," an Enforcement Directorate (ED) official said. "They have been charged with causing losses to the state exchequer. We are probing them for money laundering also."

More cases involving mill owners in other districts may be lodged as the probe progresses, the ED official added.

J.S. Gangwar, inspector-general of the Bihar police's economic offences unit (EOU), said the three cases were referred to the ED to probe the money laundering aspect.

"We had registered 10 FIRs against rice mill owners in different districts. Our officials are already investigating the cases and we have also seized assets worth Rs 8 crore belonging to four rice mill owners," Gangwar said.

The state government gives paddy to mills after procuring it from farmers by paying the minimum support price. The mills are supposed to return the milled rice to the state government and get paid for their services. The government then provides this rice to the people through the public distribution system.

In the alleged scam, hundreds of mill owners are suspected to not have returned the rice to the government and instead sold it in the open market in connivance with government officials.