Lucknow, Jun 28 (IANS): The Economic Offences Wing (EOW) of Uttar Pradesh Police has arrested a former fair price shop operator in connection with a multi-crore foodgrain scam that allegedly took place in the state between 2002 and 2007.

The EOW has been investigating the case since 2010.

EOW officials said the accused, Riyaz Ahmad, a resident of Chadwa Barwa village under Sikandarpur police station limits of Ballia, was arrested in Varanasi on Tuesday.

An FIR was lodged against Ahmad at Sikandarpur police station of Ballia in 2006 for allegedly swindling food grains worth Rs 60 lakhs.

The Indian Penal Code (IPC) sections 409 (criminal breach of trust by a public servant), 419 (cheating by impersonation), 420 (fraud) and those concerning forgery; and relevant sections of the Prevention of Corruption Act have been invoked against Ahmad.

The scam reportedly took place in at least 31 districts of the state and foodgrains meant for distribution to the poor either for free or at highly subsidised rates were allegedly illegally diverted out of the state, and, in some cases, out of the country, for sale in the open market.