ED Charges 32 In ₹103-Crore Indore Municipal Corporation Fake Bill Scam

Bhopal/Indore (Madhya Pradesh): The Directorate of Enforcement (ED), Indore, has filed a detailed prosecution complaint under the Prevention of Money Laundering Act (PMLA) before the Special Court (PMLA), Indore, against 32 accused in the Indore Municipal Corporation (IMC) fake bill scam.

The accused include contractor beneficiaries, IMC officials, officials of the Local Fund Audit and Resident Audit Office, and private individuals accused of assisting in the concealment, possession, layering and use of the proceeds of crime.

Probe began after FIRs

The ED launched its investigation on the basis of multiple FIRs registered at MG Road police station, Indore.

The FIRs alleged fraudulent withdrawal of public funds from the IMC treasury through fake bills, forged work orders, fabricated measurement books, false completion certificates, manipulated note sheets and other forged records for works that were either never executed or had already been completed under genuine work orders.

Fraud trail

The investigation found that contractor firms, allegedly in collusion with IMC officials and officials of the Local Fund Audit and Resident Audit Office, prepared forged work-order files and fake bills to siphon off about Rs 103.42 crore from the IMC treasury.

According to the ED, the money was withdrawn in cash, distributed among contractors, public servants and other beneficiaries, routed through related entities in the guise of business transactions, and used to acquire movable and immovable assets and meet personal expenses.

Searches and attachments

Searches at 20 locations in August 2024 led to the seizure or freezing of assets worth about Rs 22.04 crore, including cash, bank balances, fixed deposits, demat holdings and mutual funds. The ED also recovered incriminating documents and digital evidence.

The agency subsequently attached 52 immovable properties worth about Rs 37.14 crore through two provisional attachment orders. The properties include commercial establishments, residential houses, plots and agricultural land in Madhya Pradesh and Uttar Pradesh.

So far, assets worth about Rs 59.18 crore have been attached, seized or frozen in the case.

Arrests

During the investigation, the ED arrested alleged kingpin Abhay Singh Rathore along with Mohd Zakir and Rahul Badera for their alleged role in orchestrating the fraud and laundering the proceeds of crime.

The Special Court has issued notices and summons to the accused, and the matter is listed for further proceedings.