LYNCHBURG, Va. – Rajan Babbar, 59, the owner of Taste of India, a grocery store in Lynchburg, was arrested on federal food stamp fraud and wire fraud charges, the U.S. Department of Justice (DOJ) announced on Tuesday.
Babbar was arrested without incident after being charged with fraud for his involvement in unauthorized food stamp transactions. Taste of India, a medium-sized grocery store that became a SNAP retailer in 2016, was placed on the Food and Nutrition Service (FNS) “watch list” in September 2018 due to suspicious redemption activities.
Court documents reveal that during multiple undercover FNS investigations from March 2019 to February 2020, Taste of India was found to have processed ineligible SNAP EBT transactions, including the exchange of food stamps for cosmetic and hygiene products. As a result, the store was fined $1,932 and temporarily disqualified for six months but was later allowed to continue operating as a SNAP retailer.
However, investigators noted a significant increase in SNAP transactions, from approximately $2,500 a month in January 2018 to over $104,000 by February 2023. Court documents also allege that between April and September 2023, undercover sources were able to exchange SNAP benefits for cash on three separate occasions. In each case, Babbar allegedly agreed to provide cash in exchange for the benefits, with no merchandise sold.
Babbar now faces serious charges for food stamp fraud and wire fraud, and further investigations are ongoing.