New Delhi, July 14 -- The Food Corporation of India (FCI) on Tuesday rejected media reports claiming that government rice worth Rs.1,160 crore meant for ethanol production had been diverted in Madhya Pradesh, calling the reports "factually incorrect" and "completely baseless".

In a press release, the FCI said the ongoing investigation pertains only to the alleged diversion of 490 bags (242.50 quintals) of rice valued at around Rs.5.63 lakh, and not to the entire quantity of rice supplied under the Centre's ethanol blending programme.

"The figure of Rs.1,160 crore merely represents the value of rice legitimately issued by FCI against payments received from the concerned distilleries in Madhya Pradesh and cannot be construed as the value ...