U.S. Attorney Christopher R. Kavanaugh | U.S. Department of Justice
The owner of a Lynchburg grocery store, Taste of India, has been arrested on charges related to alleged fraud involving the Supplemental Nutrition Assistance Program (SNAP). The program, previously known as the Food Stamp Program, is designed by the U.S. government to help low- and middle-income families improve their food purchasing power.
Rajan Babbar, 59, from Lynchburg, faces charges of food stamp fraud and wire fraud. He was taken into custody without incident. According to court documents, Babbar filed paperwork in 2016 with the United States Department of Agriculture’s (USDA) Food and Nutrition Service (FNS) for his store to become a SNAP retailer. His application was approved in December 2016.
By September 2018, FNS observed unusual activity in Taste of India's food stamp redemptions and placed the store on a "watch list." This led to a civil investigation and penalty in 2020 after undercover investigators found unauthorized purchases of non-eligible items using SNAP EBT cards at the store. Babbar paid a $1,932 civil penalty instead of facing a six-month disqualification but continued operating as a SNAP retailer.
Further investigations revealed unusually high redemption figures at Taste of India. Monthly SNAP transactions rose from approximately $2,500 in January 2018 to over $104,000 by February 2023 while the store remained unchanged in size and location.
In spring 2023, undercover operations conducted by USDA-OIG agents alongside the FBI and Lynchburg Police Department discovered that Babbar agreed to exchange SNAP benefits for cash on three occasions without selling any merchandise.
Acting U.S. Attorney Zachary T. Lee announced these developments along with Special Agent Charmeka Parker from USDA-OIG and Stanley M. Meador from the FBI's Richmond Division. The case is being investigated by USDA-OIG, FBI, and Lynchburg Police Department with Assistant U.S. Attorney Lee Brett prosecuting.
It is important to note that a criminal complaint is an allegation; all defendants are presumed innocent until proven guilty beyond reasonable doubt in court.
