He said the authorities in Srinagar on Sunday raided a residential house at Kralkhud area in the old city, where subsidised rice meant for sale at government fair price stores was repackaged into bags of popular rice brands.
The raid was carried out after a tip-off about the fraudulent dealing.
Spokesman said Executive magistrate M A Shah conducted the raid after getting a search warrant recovering a cache of subsidised rice being repackaged at the site. The culprits were arrested and an investigation into the matter has been initiated.
District Magistrate Srinagar Dr Shahid Iqbal Choudhary, who has directed for a sustained campaign against unlawful business dealings including food adulteration and profiteering in the district said the culprits will be handed due punishments.
He said official involvement in the illegal dealing is also being investigated assuring of the toughest punishment to whoever found involved.
The raid was in punishment of ongoing efforts of the district administration to check unlawful food business dealings in the district.