Three persons were arrested for allegedly diverting food grains meant for poor under the public distribution system to open markets in Navi Mumbai, police said on Saturday.
Acting on a tip-off, the police raided a godown at Palasphe, where rice meant for the needy, was illegally stored, senior inspector Ajaykumar Landge of Panvel police station said.
Food grains were brought from Solapur in four containers, stored in the godown and later allegedly sold in the open market, he said. The police have arrested Solapur resident Bhimashankar Khade, Iqbal Kazi and godown owner Laxman Patel, he said, adding that 110 tonnes of rice valued at Rs 33.08 lakh was also seized.
Offences under the Essential Commodities Act were registered against the trio on Friday, the official said.