The Punjab Government has got three police cases registered against two fertiliser companies and three senior officials in connection with a urea diversion scam. The cases were filed on the complaint of the state Agriculture Department after an inquiry revealed that subsidised urea meant for farmers was diverted for industrial use.

Investigations found that the companies supplied neem-coated agricultural urea to cattle feed plants of Markfed and Milkfed after relabelling the bags. The diversion was detected because agricultural urea is neem-coated, while technical grade urea used in industry is not. The price difference between subsidised agricultural urea and industrial urea is significant.

Chief Minister Bhagwant Singh Mann ordered the inquiry after the matter surfaced in June. Seven officials have also been chargesheeted. The FIRs were registered in Batala, Kapurthala and Khanna under provisions of the Bhartiya Nyay Sanhita, Essential Commodities Act and Fertiliser Act against officials of the cooperatives and the companies involved.

The scam came to light after farmer unions affiliated with Samyukt Kisan Morcha raised the issue. Subsequent raids confirmed the diversion of urea.