In a significant crackdown on biofuel adulteration in Rajasthan, authorities have uncovered a massive ₹500 crore counterfeit ethanol and biodiesel racket involving multiple factories and distributors. Led by Rural Development and Agriculture Minister Kirori Lal Meena, state officials conducted raids on several biodiesel production units—particularly targeting unlicensed operations in Sirohi that were falsely blending ethanol and fuel without proper authorization. The accused network reportedly included around 12 institutions, with at least one individual implicated in a ₹300 crore tax and revenue fraud.

Following the scandal, the Rajasthan government is drafting new legislation to penalize biofuel adulteration—amending the Rajasthan Biofuel Rules, 2019 to include scope for license cancellation and criminal prosecution of offenders. The move comes amid earlier exposure of fake fertiliser and seed scams, signaling a broader initiative to fight counterfeit products that threaten agriculture and rural livelihoods.