Two rackets in illegal trading of rice meant for distribution to below poverty line families through the public distribution system were busted by a vigilance team comprising police and officials of the Department of Food and Civil Supplies in the district on Wednesday.

The total quantity of rice seized was 111 quintals. The team raided a warehouse in Harakere village near here and found that the rice meant for distribution through fair price shops was being re-packed there for open market sale at a higher price. The officials seized 108 quintal of rice, one truck and three multi-utility vehicles parked on the premises. Police have launched a manhunt to arrest one Satish who was allegedly involved in this illegal business.

In another incident, a warehouse at Kallur-Mandli industrial estate on the outskirts of Shivamogga city was raided and three quintals of rice illegally diverted from the public distribution system for open market sale was seized. Mohammed Irfan, a resident of N.T. Road, was arrested in this connection. Two of his accomplices who were also involved in the illegal business with him are absconding. A truck has been seized from the premises.

As part of the probe, police are collecting information on the source from which the persons involved in the racket were getting the foodgrains and on the grocery shops that were making the purchases from them.