Maihar School Construction Scandal: Firms Face FIRs, Account Freeze Over Rs 4.37 Crore Fraud
Maihar School Scandal: Firms Face FIRs Over Rs 4.37 Crore Fraud

Maihar District Administration Cracks Down on Rs 4.37 Crore School Construction Scandal

The Maihar district administration has launched a decisive crackdown on a significant financial scandal, ordering police to file criminal cases and freeze the bank accounts of three private firms implicated in an alleged Rs 4.37 crore fraud related to school construction projects. This action targets companies accused of siphoning government funds intended for minor works at 21 government schools across the district.

Investigation Reveals Fabricated Projects on Paper

The crackdown stems from a thorough investigation initiated by Maihar District Collector Rani Batad, which uncovered that payments totaling Rs 4.37 crore were disbursed for projects that existed almost entirely on paper. The probe revealed a disturbing pattern where work orders, completion claims, and payments were processed with alarming speed, suggesting fraudulent activities.

Authorities have directed police to register First Information Reports (FIRs) against the firms, which are accused of misappropriating funds earmarked for essential minor works such as cycle sheds, parking sheds, painting, and repairs. Simultaneously, banks have received orders to immediately freeze the companies' accounts to prevent any withdrawal or diversion of the suspected misappropriated funds.

Swift Action Following Probe Findings

Acting on the investigation's findings, the district education officer wrote to the Maihar Superintendent of Police on February 4, formally requesting the registration of FIRs. This move was complemented by directives to financial institutions to lock the firms' accounts without delay, ensuring a comprehensive response to the alleged fraud.

So far, three school principals have been suspended in connection with the scandal. The state government funds for these minor works were released in September last year, with the entire cycle of fund disbursement, supposed construction, and final payments completed in just one month. Documents obtained by investigators show that in several instances, work orders issued on September 9 led to bills claiming completion by September 11, with payments cleared by September 27—indicating that entire "constructions" were fabricated in as little as two days.

Probe Team and Broader Implications

Collector Rani Batad formed a dedicated probe team led by the Maihar Sub-Divisional Magistrate to investigate the irregularities. The team's report, which detailed the fraudulent activities, triggered the current administrative and legal actions. Local activist Subhash Pandey commented on the scandal, stating, "Work orders were issued and everything was shown on paper to withdraw funds. A state-level probe could easily expose a scam close to Rs 100 crore," highlighting potential broader implications.

Maihar District Panchayat CEO Shailendra Singh provided further details on the disciplinary measures, noting, "Three principals were suspended, recommendations against 11 were sent to the divisional commissioner, and action against two was underway at the district panchayat level after issuing show-cause notices." This indicates ongoing efforts to hold accountable those involved in the alleged fraud.

Conclusion: A Call for Transparency and Accountability

This scandal underscores critical issues in the management of government funds for public infrastructure projects. The Maihar district administration's swift response, including criminal cases and financial freezes, aims to restore integrity and ensure that funds intended for school improvements reach their intended purposes. As investigations continue, this case serves as a stark reminder of the need for robust oversight and transparency in public spending to prevent such frauds in the future.