Balasore, March 22: A joint team involving the vigilance, commercial taxes and civil supplies departments today raided a rice mill near Sergarh in Nilgiri sub- division, around 12km from here.

Preliminary assessment made by the vigilance department sleuths suggested that the shortfall of stock in the mill was around 17,815 quintals worth of around Rs 3.1 crore.

“Neither the mill has the stock nor could it supplement the account of the shortfall quantity amounting around Rs 3.21 crore. The mill has nearly 30 quintals of rice on the campus,” said inspector Aditya Pratihari of vigilance department.

He added that the department would initiate a case against the rice mill under the Essential Commodities Act and other relevant laws of the Indian Penal Code.

“We had information regarding irregularities in the said mill and our team had conducted a verification drive a few weeks ago. We suspect that rice from the mill was being smuggled to Bengal,” he said

“After learning the illegal activities, the matter was intimated to the higher authorities and a joint raid was conducted today,” said Narayan Chandra Pati, the district civil supplies officer.

Meanwhile, the commercial tax department, after verification of the records and documents of the mill, has found a tax evasion to the tune of several lakhs of rupees.

“The preliminary assessment suggests that the figure of evasion could be around Rs 37 lakh,” said Surya Narayan Mishra, deputy commissioner of commercial tax (vigilance).