ED Arrests Three In Indore Municipal Corporation Multi-Crore Fake Bill Scam
· Free Press Journal
Bhopal (Madhya Pradesh): The Directorate of Enforcement (ED), Indore, has arrested the then assistant engineer of the Indore Municipal Corporation (IMC), Abhay Singh Rathore, and two others under the provisions of the PMLA, 2002, in connection with a money laundering investigation into the multicrore fake bill scam, officials said on Wednesday.
Rathore, along with Contractors Mohd Zakir and Rahul Badera, was produced before the Special Court (PMLA), Indore. The court granted ED custody of the accused till June 5, 2026, for further investigation.
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ED initiated the investigation on the basis of multiple FIRs registered and chargesheets filed by Police Station MG Road, Indore, under various provisions of the IPC, 1860, relating to the fraudulent withdrawal of funds from the treasury of the IMC through fake bills, forged work orders, fabricated records and non-existent project works.
Fake and bogus bills worth approximately Rs 119.53 crore were submitted to the IMC for non-existent works, resulting in fraudulent disbursements of approximately Rs 86.54 crore from its treasury.
The agency has quantified the fraud at approximately Rs 92.76 crore, which constitutes proceeds of crime under the PMLA, 2002.
The investigation revealed that the accused submitted fabricated bills to the IMC and received payments through firms under their control without carrying out any work, causing wrongful loss to the IMC and unlawful gain to themselves.
The ED said Rathore emerged as one of the principal conspirators in the scam and played a key role in facilitating the preparation and processing of fake work orders.
Contractors Zakir and Badera, through firms owned and controlled by them, received approximately Rs 71.78 crore from the IMC treasury against fake and bogus bills that form part of the present investigation.
The agency alleged that they played an active role in the preparation, submission and processing of fake bills and in the subsequent distribution of fraud proceeds among various beneficiaries involved in the conspiracy.
Earlier, the ED had conducted searches resulting in the seizure of cash and valuables worth approximately Rs 22.04 crore. Subsequently, immovable properties having an approximate value of Rs 34 crore were provisionally attached through a Provisional Attachment Order dated July 3, 2025.
Further investigation is continuing to trace the remaining proceeds of crime, identify additional assets acquired therefrom and ascertain the complete money trail.
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