The Directorate of Enforcement (ED), Indore sub-zonal office, arrested three individuals on Wednesday in connection with the multi-crore Indore Municipal Corporation (IMC) fake bill scam. The accused, identified as Abhay Singh Rathore, Mohd. Zakir, and Rahul Badera, were taken into custody under the Prevention of Money Laundering Act (PMLA), 2002. They were produced before the special court (PMLA) in Indore, which remanded them to ED custody until June 5, according to an ED press release.
Investigation Details
The ED initiated its probe based on multiple FIRs and chargesheets filed at MG Road police station. These documents detailed fraudulent fund withdrawals through forged work orders and non-existent project records. The investigation revealed that between 2018 and 2023, fake bills totaling Rs 119.53 crore were submitted to IMC for works that were never executed. This resulted in fraudulent disbursements of Rs 86.54 crore. Additionally, Rs 6.22 crore was siphoned off prior to 2018 using the same method, bringing the total quantified fraud to Rs 92.76 crore.
Role of the Accused
Abhay Singh Rathore, a former assistant engineer at IMC, was identified as the principal conspirator who facilitated the creation of fake work orders. Contractors Mohd. Zakir and Rahul Badera allegedly received Rs 71.78 crore through their firms without performing any actual work. The ED is continuing its investigation to identify other individuals involved in the scam.
Related Action: Former Excise Officer's Assets Attached
In a separate operation, the ED’s Bhopal Zonal Office provisionally attached movable and immovable properties worth Rs 18.20 crore belonging to Dharmendra Singh Bhadauria, former district excise officer of Alirajpur, and his family. This action stems from a Lokayukta FIR alleging possession of assets disproportionate to known income sources. The investigation revealed that between 1987 and August 2025, Bhadauria amassed assets valued at Rs 11.18 crore against a lawful income of Rs 2 crore. The attached assets include cash, gold jewellery, bullion, and real estate, which have been categorized as proceeds of crime.
