Indore: The Directorate of Enforcement (ED), Indore Sub-Zonal Office, has filed a detailed chargesheet spanning over 20,000 pages under the Prevention of Money Laundering Act (PMLA), 2002, before the Special Court (PMLA) here against 32 accused persons in the Indore Municipal Corporation (IMC) fake bill scam.
The accused include contractor beneficiaries, officials of the Indore Municipal Corporation, officials of the local fund audit/resident audit office, and other private persons who allegedly assisted in the concealment, possession, layering and use of the proceeds of crime.
The ED initiated its investigation on the basis of multiple FIRs registered by Police Station MG Road, Indore. These FIRs related to the fraudulent withdrawal of public funds from the treasury of the Indore Municipal Corporation through the submission of fake bills, forged work orders, fabricated measurement books, false completion certificates, manipulated note-sheets and other falsified records.
The works in question were either not executed at all or had already been completed under genuine work orders.
Investigation by the ED revealed that various accused contractor firms, in connivance with IMC officials and officials of the local fund audit/resident audit office, prepared and processed forged work-order files and fake bills. Through this mechanism, they fraudulently siphoned off public funds amounting to approximately Rs 103.42 crore from the IMC treasury.
The fraudulently obtained funds were withdrawn in cash, distributed among contractors, public servants and other beneficiaries, transferred to related and associated entities under the guise of business transactions, intermingled with other funds, and utilised for the acquisition of movable and immovable assets as well as personal expenditure.
During the course of investigation, the ED conducted searches at 20 premises on August 5 and 6, 2024. These searches led to the seizure and freezing of assets worth approximately Rs 22.04 crore, including cash, bank balances, fixed deposits, demat holdings and mutual funds, besides the recovery of incriminating documents and digital evidence.
Subsequently, the ED provisionally attached 52 immovable properties valued at approximately Rs 37.14 crore through two provisional attachment orders issued under the PMLA, 2002. The attached properties comprise commercial properties, residential houses and plots, and agricultural lands situated in Madhya Pradesh and Uttar Pradesh.
In total, assets having an aggregate value of approximately Rs 59.18 crore have been provisionally attached, seized or frozen in the case so far.
The ED also arrested the alleged kingpin of the scam, Abhay Singh Rathore, along with Mohd Zakir and Rahul Badera, under Section 19 of the PMLA, 2002, for their central role in designing and laundering the proceeds of crime.
The chargesheet was filed on July 24 before the Special Court (PMLA), Indore, inter alia, seeking confiscation of the attached, seized and frozen properties involved in money laundering under the provisions of the PMLA, 2002.
The Special Court has issued notices and summons to the accused persons, and the matter is listed for further proceedings.
(IANS)
