MP News: Civic Bodies Losing Over ₹28 Crore Annually Due To Fake Employees

MP News: Civic Bodies Losing Over ₹28 Crore Annually Due To Fake Employees

Over 1.4 lakh employees across the state are registered under e-attendance. Initial estimates suggested about 5,000 absentee or fake entries would be eliminated, bringing substantial financial relief. A senior official said that nearly 70–80% of fake entries were reportedly inserted by local political leaders, using these people as party workers while drawing municipal salaries.

Staff ReporterUpdated: Wednesday, November 19, 2025, 09:16 PM IST
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Bhopal (Madhya Pradesh): Madhya Pradesh’s 413 Urban Local Bodies (ULBs) were collectively losing over Rs 28 crore annually due to thousands of fake or suspicious municipal employees who continued drawing salaries without working.

This massive leakage came to light after Urban Administration and Development Department (UAD) implemented the Aadhaar Enabled Biometric Attendance System (AEBAS), replacing old thumb-based and manual attendance methods. Municipal employees now mark attendance through Aadhaar Face RD app from their designated work locations, making it nearly impossible for ghost employees to be recorded as present.

Over 1.4 lakh employees across the state are registered under e-attendance. Initial estimates suggested about 5,000 absentee or fake entries would be eliminated, bringing substantial financial relief. A senior official said that nearly 70–80% of fake entries were reportedly inserted by local political leaders, using these people as party workers while drawing municipal salaries.

Data from 10 divisions covering 98 Nagar Palikas and 264 Nagar Parishads shows 1,126 fake employees already identified, translating into annual savings of Rs 6.22 crore (around Rs 68 lakh per month). Bhopal recorded the highest number at 544, Shahdol lowest at 8. With municipal corporations yet to complete verification, total savings could surpass Rs 30 crore annually. Numbers may fluctuate due to transfers, retirements and ongoing corrections, but financial benefit to urban bodies will remain significant.

FIRs to be filed

An UAD official told Free Press that after completing data verification, expected within a month, the department will instruct ULBs to file FIRs against employees who drew salaries fraudulently, enabling recovery of misappropriated funds.

UAD Commissioner directs swift action

UAD Commissioner Sanket Bhondve said that all remaining ULBs have been directed to correct records within 10 days. He said reductions reflect multiple causes, including removal of fake names and assured strict action following investigations.

Division wise fake or suspicious employees identified in 397 ULBs (barring 16 municipal corporations)

Divisions Fake or suspicious employees

Bhopal 544

Gwalior & Chambal 206

Sagar 119

Jabalpur 89

Rewa 61

Ujjain 44

Indore 43

Narmadapuram 12

Shahdol 8

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