Special team to probe Supplyco ‘sugar scam’; 8 employees suspended so far

A special investigation team has been constituted to probe the alleged ‘sugar scam’, which has so far resulted in 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 probe whether more people were involved in the diversion of sugar to a private company by misusing gift cards issued by Supplyco as part of its Onam scheme.Seven employees were suspended on Tuesday in connection with the case pertaining to the alleged supply of non-subsidised sugar from Supplyco’s Perumbavoor depot to a company named Keerthi Nirmal.Those suspended are Supplyco head office deputy manager Sajeev Paul, Arakkappady Maveli Store outlet-in-charge Anju Vijayan, Thuravoor Maveli Store outlet-in-charge Sandhya A.S., Divya M.R. of the Palissery Maveli Store, Soumini S. of the Ponjassery outlet, Manju Antony of the Karukutty Maveli Store, and Basil Cherian A. of the Sreemoolanagaram Maveli Store.The custodian in charge of Maveli stores under the Perumbavoor depot, Rajeesh Raveendran, had earlier been suspended in connection with the incident.The private company had been issued 1,000 coupons worth ₹1,000 each under Supplyco’s Onam gift card scheme. Mr. Raveendran allegedly issued non-subsidised sugar from the Perumbavoor depot to the Supplyco outlets at Thuravoor, Palissery, Karukutty, Sreemoolanagaram, Ponjassery, and Arakkappady to be supplied against the entire value of the coupons. The sugar was subsequently billed at the outlets.However, an inspection conducted by the Supplyco Vigilance officer found that the sugar stock was retained at the depot while the records showed otherwise.The outlet employees were suspended for selling large quantities of sugar to a private company at a time when there was a significant difference between the market price of sugar and the Supplyco price, and for irregularly handling the stock.Food and Civil Supplies Minister Anoop Jacob said such irregularities would not be tolerated and that strict action would be taken against those responsible. Published - September 09, 2026 09:39 pm IST