The owner of Taste of India, a grocery store in Lynchburg, Virginia, has been arrested on charges related to alleged fraud involving the Supplemental Nutrition Assistance Program (SNAP). The program, formerly known as the Food Stamp Program, aims to help low- and middle-income families by increasing their food purchasing power.
Rajan Babbar, 59, faces charges of food stamp fraud and wire fraud. According to court documents, Babbar's application for SNAP retailer status was approved by the United States Department of Agriculture’s (USDA) Food and Nutrition Service (FNS) in December 2016.
In September 2018, FNS observed unusual activity in Taste of India's food stamp redemptions and placed the store on a watch list. A civil investigation led to a penalty in 2020 after undercover investigators purchased ineligible items using SNAP EBT cards. Babbar paid a $1,932 civil penalty instead of facing disqualification but continued as a SNAP retailer.
Further investigations revealed unusually high SNAP redemptions at Taste of India. Monthly transactions increased from $2,500 in January 2018 to over $104,000 by February 2023. Despite this increase, the store's location and size remained unchanged.
Undercover operations conducted by USDA-OIG with assistance from the FBI and Lynchburg Police Department found that Babbar agreed to exchange SNAP benefits for cash on three occasions between April and September 2023 without selling any products.
The announcement was made by Acting U.S. Attorney Zachary T. Lee along with Special Agent Charmeka Parker of USDA-OIG and Stanley M. Meador from the FBI’s Richmond Division. Assistant U.S. Attorney Lee Brett is handling the prosecution.
Investigations are ongoing with efforts from USDA-OIG, FBI, and Lynchburg Police Department involved in the case.
"A criminal complaint is merely an allegation," noted officials. "All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law."