The CBI on Wednesday launched 'Operation Kanak' on alleged corruption in the Food Corporation of India, conducting searches at 50 locations in Punjab, Haryana and Delhi after arresting a DGM-rank officer from Chandigarh, officials said.

The CBI booked a total of 74 accused in the FIR, including FCI Executive Director Sudeep Singh after a six-month-long undercover operation to identify suspects in the syndicate of officials, rice mill owners and middlemen, among others who were allegedly indulging in corrupt practices.

Deputy general manager (DGM) of FCI Rajiv Kumar Mishra was arrested for allegedly receiving a bribe of Rs 50,000 from one Ravinder Singh Khera, the CBI said, adding the role of senior officers of Punjab government are also under scanner for running 'benami' godowns outsourced to the FCI.

Among the 74 accused, 34 are serving officials, three are retired, 17 private persons and 20 entities, the officials said, adding that the agency has recovered Rs 80 lakh in cash, including Rs 10 lakh from a female officer which was hidden in a washing machine.

Sources said the agency has started the operation against an "unholy nexus of corruption" in the FCI involving a chain of officers, rice mill owners, grain merchants etc., engaged in the procurement, storage and distribution of food grains.

It is alleged that the accused officials were receiving bribes from silos operator and rice millers in extending favours during tendering process as well.

Their illicit actions cheated farmers by forcing them to sell product through syndicate and end consumers as well who were getting sub-standard grains under the Public Distribution System, the CBI alleged.

The agency also alleged officials showed more procurement on paper than what was available in godowns.

The role of officials from technical assistants to executive directors in the FCI are under the agency's scanner, the officials said.

They said the operation is spread across multiple cities in Punjab, Haryana and two locations in Delhi.