The Enforcement Directorate (ED) conducted coordinated searches across Rewa and Mauganj districts in Madhya Pradesh on Friday, targeting a suspected Rs 37 crore fake bitumen bill scam. The case, originally registered by the Economic Offences Wing (EOW), involves allegations that contractors linked to the Madhya Pradesh Road Development Corporation (MPRDC) submitted forged invoices to fraudulently claim payments for bitumen that was never purchased.
Locations Searched and Documents Seized
Among the locations searched was a contractor-linked premises in Rewa’s Padmadhar Colony. ED teams meticulously examined financial records, property documents, bank transaction details, and other relevant documents during the operation. Similar actions were carried out at premises connected to the investigation in Mauganj district.
Legal Framework and Objective
The searches were conducted under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The primary objective is to trace the alleged proceeds of crime and gather evidence related to suspected money laundering activities stemming from the fraudulent billing scheme.
Details of the Alleged Fraud
According to the EOW, contractors associated with road construction projects submitted fake invoices purportedly issued by major oil companies, including Indian Oil Corporation, Hindustan Petroleum Corporation Ltd, Bharat Petroleum Corporation Ltd, Essar, and Nayara Energy. These invoices were used to claim reimbursement for bitumen used in road works under various MPRDC projects. However, verification during the investigation revealed that the invoices were not genuine, indicating that the bitumen shown in the bills had never been procured. The alleged fraud raised serious concerns about the quality and integrity of road construction.
ED's Ongoing Investigation
The ED is currently examining financial transactions, assets, and fund flows linked to the case to determine whether proceeds generated through the alleged fraud were diverted or laundered through other channels. Searches and scrutiny of documents were continuing at the time of filing this report. The agency aims to uncover the full extent of the money trail and identify any individuals or entities involved in the laundering process.
