Bhopal (Madhya Pradesh): A new modus operandi of alleged fraud in the Bhopal Municipal Corporation's (BMC) property tax system has come under scrutiny. A property's recorded area was allegedly altered to “zero” to reduce its tax liabilities, while an official's user ID was used to make the changes through the 'forgot password' option.
The case involves a private school in Idgah Hills, where a tax demand of Rs 7.71 lakh was reduced to Rs 1.09 lakh, causing an alleged revenue loss of Rs 6.62 lakh to the BMC.
Free Press had first reported the matter on July 12, 2026. BMC officials suspect that similar manipulation may have taken place in other properties across the city, with the alleged fraud potentially running into crores of rupees.
Kohefiza police have registered a case of forgery and fraud against unknown persons.
34,872 sq ft becomes 5,856 sq ft in tax records
According to the investigation, on March 31, the school's recorded property area was changed from 34,872.3 sq ft to 5,856 sq ft using the user ID of the Zone-2 zonal officer.
During the same process, solid waste management charges and trade licence fees were reduced to “zero”. The property's recorded area was subsequently increased again in the system on June 24, raising questions over whether the alteration was an attempt to conceal the earlier changes.
The original outstanding amount comprised Rs 4,49,870 in property tax, Rs 2,71,311 towards solid waste management and surcharge, and Rs 50,000 as trade licence fee and surcharge, totalling Rs 7,71,181.
Suspicious digital activity detected
The discrepancy came to light during property tax collection efforts in April, when zonal officer Mohit Malviya noticed that the receipt generated for the school showed an unexpectedly low amount.
Online records showed that only Rs 1,09,423 had been deposited on March 31. A technical investigation by IT agency Deloitte reportedly found that the password of the Zone-2 zonal officer's ID was changed on March 31 at 3:21:02 pm by the 'Support-1' user at the BMC headquarters.
The property account had also been accessed through the computer branch application on March 14.
Probe underway
The BMC computer branch has recorded statements of officials and employees, including Shrirajbhan Tripathi, Abhay Chaturvedi, Kuldeep Jain, Mohit Malviya, Jitendra Gaur and SAP consultant Durga Sahu.
Investigators are examining digital logs, IP addresses and online records to identify who accessed the account, changed the password and allegedly manipulated the tax details.
