More than a year following the tragic suicide of Madhya Pradesh businessman Manoj Parmar and his wife Neha, the Enforcement Directorate (ED) has escalated its investigation by filing a prosecution complaint, alleging that Parmar fraudulently availed loans exceeding Rs 6 crore under two government schemes. This development adds a new layer to a case that has drawn significant attention due to the family's claims of harassment by enforcement agencies.
Details of the ED's Allegations
The ED's Bhopal Zonal Office submitted the Prosecution Complaint (PC) on January 28, 2026, targeting Mark Pius Karari, the former Branch Manager of Punjab National Bank in Ashta, Sehore district, along with four other individuals. The complaint, filed under the Prevention of Money Laundering Act (PMLA), 2002, before the Special Court (PMLA), has led to the issuance of notices to the accused, marking a critical step in the legal proceedings.
Fraudulent Loan Scheme Uncovered
According to the ED's probe, Manoj Parmar allegedly orchestrated a sophisticated fraud scheme in collaboration with bank officials. The investigation revealed that in 2016, Parmar secured 18 loans totaling Rs 6.2 crore under the Pradhan Mantri Employment Generation Programme (PMEGP) and the Chief Minister Yuva Udyami Yojana (CMYUY). Shockingly, Rs 6.01 crore of this amount was disbursed using fabricated applicants, forged documents, and falsified quotations, highlighting a blatant misuse of government initiatives designed for self-employment.
ED officials have asserted that standard loan sanction protocols were completely disregarded in this case. This included bypassing essential second-level approvals and exceeding the authorized financial limits of the branch manager. Field inspections by bank officials later confirmed that no business units were ever established, and many supposed borrowers denied applying for or receiving any loans, an ED official stated, underscoring the extent of the fraud.
Diversion and Concealment of Funds
The agency further alleged that the fraudulently obtained loan funds were diverted into accounts controlled by Manoj Parmar and his close associates. From these accounts, the money was moved between multiple linked entities to obscure its source, withdrawn in cash, and partially used to purchase properties in the names of Parmar and others. Firms under Parmar's control were allegedly utilized as layers to circulate the funds and project false business activity, creating a complex web of financial deception.
This systematic routing, layering, and cash withdrawal of government-subsidized loan funds clearly indicate a deliberate diversion of public money, constituting Proceeds of Crime, the ED submitted in its complaint. In a prior action, the agency had provisionally attached 12 immovable properties valued at approximately Rs 2.08 crore in Ashta and Sehore, all linked to Parmar and his network, as part of its efforts to recover the illicit gains.
Background and Tragic Suicide
The case originated from a First Information Report (FIR) filed by the Central Bureau of Investigation (CBI) in Bhopal, which charged Parmar, Karari, and others under sections of the Indian Penal Code (IPC), 1860, and the Prevention of Corruption Act, 1988. Following the CBI's chargesheet, the ED initiated a parallel money laundering inquiry, leading to the current developments.
These legal actions unfold against the backdrop of a heartbreaking incident. On December 13, 2024, Manoj Parmar and his wife Neha were found dead at their residence in Sehore in an apparent suicide. The couple had returned from a temple visit in Susner the previous night with their three children. Their eldest son, Jatin, discovered their bodies hanging in their room the next morning and promptly alerted the authorities. Police recovered a five-page suicide note from Parmar, though its contents remain undisclosed to the public.
Family members had previously claimed that the couple took their lives due to intense pressure from the ongoing ED investigation. This allegation gained traction as ED teams had conducted raids on four premises in Sehore and Indore connected to Parmar just days earlier, on December 5, 2024, intensifying the scrutiny on their financial affairs.
The ED's latest complaint not only highlights the alleged financial irregularities but also raises questions about the impact of enforcement probes on individuals, adding a human dimension to this complex case of fraud and tragedy in Madhya Pradesh.
