Cuttack: Police suspect that a spurious fuel selling racket is operating in the Jagatpur truck terminal area following the seizure of large quantities of kerosene meant for public distribution system along with diesel, other chemicals from an abandoned public toilet there on Wednesday.

One persons, Kedareswar Swain, 40, of Nankar area in Jagatpur police station limits, has been arrested in this connection.

Acting on a tip-off, a Jagatpur police station team raided an abandoned public toilet maintained by the Cuttack Municipal Corporation on Wednesday and made the seizure.

"Our team found huge quantity of kerosene meant to be supplied under the public distribution system and arrested Kedareswar Swain," said deputy commissioner of police Akhileswar Singh.

"Five metallic barrels filled with kerosene, five empty metallic barrels, two empty plastic barrels and two tin funnels were also seized," Singh said.

He added that a case has been registered under the Essential Commodities Act following the arrest of Swain.

Kerosene is supplied by three public sector companies - Indian Oil, Bharat Petroleum and Hindustan Petroleum - under the public distribution system.

These companies fix a three-month kerosene quota for every state. Every state in the country facilitates the distribution to dealers through these oil companies.

The dealers use their tankers to ferry kerosene from company depots and then to PDS fair price shops and finally to the beneficiaries.

The police suspect that the accused was running a spurious diesel selling racket from the premises of the public toilet house from where around 1,000 litres of kerosene, diesel and chemicals were seized.

Preliminary findings hint that adulterated diesel was being prepared there by using subsidised kerosene meant for public distribution system with application of certain chemicals.

The police suspect that members of the racket used to steal fuel from vehicles parked at the truck terminal and supply the same to Swain for adulteration.

The spurious diesel was then sold to vehicle drivers at the truck terminal.

The kerosene was allegedly sourced by pilferage from tankers ferrying kerosene from company depots in Cuttack to various districts, in connivance with the drivers, said a police officer.