Uttar Pradesh food grain scam took place between years 2002 and 2010, in Uttar Pradesh state in India, wherein food grain worth ₹350 billion (US$4.0 billion), meant to be distributed amongst the poor, through Public Distribution System (PDS) and other welfare schemes like Antyodaya Anna Yojana (AAY), Jawahar Rozgar Yojana and Midday Meal Scheme for Below Poverty Line (BPL) card holders, was diverted to the open market.
It went somewhere else and resulted in an escalation of the international prices,” Rajya Sabha MP D Raja said.The Regional Food Controller's office in the state is responsible for procuring the food-grain, while the District Rural Development Agency (DRDA) is in charge of its distribution.
An embezzlement by a section of officers from the controller's office made news in March 2004, after 70 truckloads of rice meant for distribution was lifted from the Food Corporation of India (FCI) and when FCI demanded its payment, a project director refused to verify the stock register, gradually it was revealed that they had been selling the grains in the black market and a probe was ordered.
By December 2004, Chief Minister Mulayam Singh Yadav had suspended a district magistrate of Lakhimpur Kheri and several officials of the food department and political parties including the CPI, Congress and BJP were increasing pressure on the government to order a CBI probe.
[13] The Lucknow Bench of the Allahabad High Court, responding to a PIL, on 23 December 2009, directed the Uttar Pradesh government to file a status report on all the nine food grain scams in the state from 2000 till 8 January 2010 being investigated by the CBI.
[14] On 3 December 2010, the Lucknow Bench of the Allahabad High Court, responding to public interest litigation (PIL) filed by advocate Vishwanath Chaturvedi, directed the Central Bureau of Investigation (CBI) to conduct and complete an inquiry within six months, into the foodgrain scam in Gonda, Lucknow, Varanasi, Ballia, Lakhimpur Kheri and Sitapur districts.
It also stated, that "It shall not be necessary for the CBI or state agencies to obtain sanction under the statutory provision with regard to present controversy where from initial stage, prima facie intentionally, deliberately and in a planned manner, the foodgrains were lifted from godowns for sale either in the open market or to smuggle outside UP or to other countries, "[15][16] The bench also asked the Centre and Uttar Pradesh government, to consider appropriate amendments in the "Prevention of Corruption Act, 1988.