Zachary T. Lee Acting United States Attorney | U.S. Attorney for the Western District of Virginia
A Lynchburg store owner, Rajan Babbar, 59, has been indicted by a federal grand jury in Charlottesville on charges related to food stamp and wire fraud. Babbar, the owner of Taste of India grocery store in Lynchburg, is accused of defrauding the Supplemental Nutrition Assistance Program (SNAP).
The indictment against Babbar includes one count of SNAP benefits fraud, three counts of wire fraud, and four counts of transacting in criminally derived property. According to court documents, Babbar filed paperwork with the USDA's Food and Nutrition Service (FNS) in 2016 to register his store as a SNAP retailer. His application was approved in December 2016.
From April 2021 onwards, it is alleged that SNAP sales at Taste of India saw a significant increase. Between 2018 and 2020, average monthly SNAP sales were about $5,324. However, this figure rose dramatically to approximately $53,147 per month in 2021 and 2022 and further increased to around $60,385 per month during 2023 and 2024.
The indictment claims that Babbar allowed individuals to exchange their SNAP benefits for cash by conducting false transactions for nonexistent food items. These individuals reportedly received cash equivalent to about half the value of their SNAP benefits.
In addition to the criminal charges, there is a notice seeking forfeiture of approximately $383,232 in funds and commercial real estate property in Lynchburg.
The case is being investigated by the USDA-OIG, FBI, and Lynchburg Police Department. Assistant U.S. Attorney Lee Brett is handling the prosecution.
"An indictment is merely an allegation," stated authorities involved with the case proceedings. "All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law."
