ED Cracks Down on Rs 119.53 Crore IMC Scam with Arrests

In a significant development, the Enforcement Directorate (ED) announced the arrest of three pivotal figures in the probe surrounding an intricate money laundering operation linked to the Indore Municipal Corporation (IMC) fake bill scam involving a staggering Rs 119.53 crore. The individuals arrested, namely Abhay Singh Rathore, Mohd Zakir, and Rahul Badera, were taken into custody on June 1 under the stringent Prevention of Money Laundering Act (PMLA), 2002.

ED's disclosure indicates the accused were presented at the Special PMLA Court in Indore, which extended ED custody until June 5 for further interrogation. The investigation was initiated following multiple FIRs filed by Police Station MG Road, Indore. These documents highlighted a fraudulent extraction of funds from the IMC treasury via invalid bills and forged work orders, which were associated with non-existent project executions.

The period between 2018 to 2023 saw the submission of false bills totaling Rs 119.53 crore for fictional works, with Rs 86.54 crore illicitly extracted from the treasury, according to ED findings. Further scrutiny revealed a past fraudulent withdrawal of public funds totaling Rs 6.22 crore through similar deceptive methods before 2018. Consequently, the total alleged fraud stands at Rs 92.76 crore, marked as 'Proceeds of Crime' under PMLA, 2002.

Investigators also uncovered that the accused presented counterfeit bills to the IMC, facilitating disbursements to entities under their influence, without actual work being done. Assistant Engineer Abhay Singh Rathore emerged as a key player in orchestrating these deceptive activities. Further, contractors Mohd Zakir and Rahul Badera were implicated in receiving Rs 71.78 crore from the IMC treasury for fraudulent bills.

Earlier, ED operations under Section 17 of the PMLA, 2002 resulted in the seizure of cash and valuables approximating Rs 22.04 crore. A provisional attachment order dated July 3, 2025, also saw the attachment of immovable properties valued at about Rs 34 crore. The probe continues to trace additional proceeds of crime and compile a comprehensive money trail.

(With inputs from agencies.)