The Enforcement Directorate (ED) is set to investigate money laundering charges in connection with an alleged ₹2,000 crore scam involving Rajasthan's mid-day meal scheme. This action follows the lodging of a First Information Report (FIR) by the state's Anti-Corruption Bureau (ACB). The alleged scam concerns irregularities in the supply of food items to school students during the COVID-19 pandemic.

The ACB's FIR names 21 individuals, including officials from the Rajasthan State Co-operative Consumers' Federation Limited (CONFED), private firm owners, and Madhur and Tribhuvan Yadav, sons of former minister Rajendra Yadav. They are accused under provisions of the Prevention of Corruption Act, the Indian Penal Code, and the Rajasthan Transparency in Public Procurement Act.

The case pertains to alleged corruption in the supply of dry ration packets, including pulses, cooking oil, and spices, to schoolchildren under the mid-day meal scheme between 2020 and 2023. When schools were closed during the pandemic, the state government decided to supply combo packs containing essential food items through CONFED. These materials were supposed to adhere to Food Safety and Standards Authority of India (FSSAI) and Agmark standards and be delivered to the students' doorsteps.

However, complaints of massive irregularities and corruption emerged. Preliminary investigations by the ACB revealed collusion between officials associated with the Mid-Day Meal scheme and CONFED to manipulate the tender process. Eligible and qualified firms were allegedly excluded, and tenders were awarded to favored firms, granting them unfair advantages. These firms then reportedly sublet the contracts to other entities, creating a network of fake suppliers and transporters. In many instances, fake invoices were allegedly submitted at inflated rates without any actual purchase or supply of goods, and government payments were received based on them. The ACB estimates that this systematic fraud, forgery, and collusion resulted in a financial loss of approximately ₹2,000 crore to the state exchequer.

The ED's investigation will focus on alleged money laundering charges arising from these irregularities, scrutinizing the flow of funds and identifying the beneficiaries of the scam. The agency had previously registered an Enforcement Case Information Report (ECIR) in 2023 but was forced to close the money laundering proceedings after the state police shut the scheduled offense. With the ACB lodging a fresh FIR, the 2023 ECIR has been revived.

The ED had sent a reference to the ACB in 2024 with evidence of alleged corruption of more than ₹2,000 crore in the implementation of the scheme between 2020 and 2023. According to the ACB FIR, over 3 crore students in Classes 1-8 were provided dry ration packets in five phases between 2020-23, with the Rajasthan government spending ₹2,023.91 crore on this initiative.

Reacting to the FIR, Rajasthan Pradesh Congress Committee president Govind Singh Dotasra accused the BJP-led state government of creating a "false narrative" to malign the bureaucracy and divert attention from its own failures. He argued that payments were released only after verification by several officers and approval by district collectors.