Congress demands CBI probe into ₹600-crore MP treasury irregularities
Synopsis
Madhya Pradesh Congress has called for a CBI investigation — supervised by a Supreme Court judge — into alleged ₹600-crore treasury irregularities touching 59 state departments. With 400 FIRs already filed and the number of implicated departments nearly doubling, the opposition is framing this not as isolated fraud but as a structural failure of the state's financial control system.
Key Takeaways
Madhya Pradesh Congress demanded a CBI probe on 26 August into alleged treasury irregularities worth approximately ₹600 crore .
The alleged irregularities span 59 departments , up from an initial 24 , according to Congress leader Mukesh Nayak .
Around ₹55 crore was allegedly transferred to private accounts; transactions of nearly ₹305 crore are under suspicion.
Approximately 400 people have reportedly faced FIRs in connection with the case.
The state government has reportedly recovered ₹220 crore of an alleged ₹380-crore irregularity, though Congress says full details have not been disclosed.
Congress has demanded the probe be conducted under supervision of a Supreme Court judge, with accountability extended to senior officials.
The Madhya Pradesh Congress on Wednesday, 26 August demanded a Central Bureau of Investigation (CBI) probe into alleged financial irregularities of approximately ₹600 crore in the state government treasury system, claiming the scandal spans 59 departments and points to a fundamental breakdown in the state's financial oversight architecture.
What Congress Alleged
Former Minister and State Congress Media In-charge Mukesh Nayak, addressing a press conference in Bhopal, alleged that government funds were transferred to private bank accounts through the state treasury system. He demanded the investigation be conducted independently under the supervision of a Supreme Court judge, arguing that an internal or state-level inquiry would lack credibility given the scale of the alleged fraud.
Nayak claimed that around 400 people have already faced FIRs in connection with the irregularities, and that the number of departments under scrutiny had grown from an initial 24 to 59 — a near-doubling that, he argued, signals systemic rather than isolated misconduct.
The Financial Breakdown
According to Nayak, approximately ₹55 crore of government funds was allegedly transferred directly to private accounts, while transactions worth nearly ₹305 crore remain under suspicion. He also sought details of the state government's reported recovery of ₹220 crore out of an alleged irregularity of around ₹380 crore, questioning why full account-wise and date-wise recovery details have not been made public.
'If the government claims that ₹220 crore has been recovered, it should make public the complete date-wise, department-wise and account-wise details of the recovery and state how much money is still pending,' Nayak said.
Key Questions Raised
Nayak pressed the state government on several procedural failures: who authorised changes in bank account details within the digital payment system, who held responsibility for system passwords, and at what administrative level the alleged payments were approved. He also questioned whether prescribed budget preparation and allocation procedures were followed across the departments now under investigation.
'If these figures are correct, this is not a lapse by one office or a few employees, but points to a major systemic failure,' Nayak said.
Congress Demands Accountability at Senior Level
The party made clear it does not want accountability confined to lower-rung employees. Congress demanded that senior officials responsible for supervising the financial system — those with authority over digital access, payment approvals, and inter-departmental fund flows — also face investigation. Nayak further called for an examination of whether allegedly diverted funds were used to acquire land, housing, vehicles, or other assets.
What Happens Next
The Madhya Pradesh state government has not yet publicly responded to the specific allegations raised at Wednesday's press conference. With the Congress pressing for Supreme Court-supervised oversight and CBI jurisdiction, the political pressure on the ruling dispensation in Bhopal is likely to intensify. Whether the Centre agrees to hand the matter to the CBI — which requires state or court direction — remains the critical next step.
Point of View
400 FIRs, and a figure that has climbed toward ₹600 crore — makes it difficult to treat as routine administrative slippage. The Congress demand for Supreme Court supervision is a calculated move: it pre-empts the argument that a state-ordered or Centre-ordered CBI probe would be politically steered. What the opposition has not yet produced is documentary evidence linking the transfers to named beneficiaries or senior officials — without that, the press conference risks being received as political theatre ahead of electoral cycles. The real accountability test will come if and when a court or the CBI maps the money trail beyond the lower-rung employees who have so far borne the FIRs.
NationPress
26 Aug 2026
Frequently Asked Questions
What are the alleged financial irregularities in Madhya Pradesh's treasury system?
Congress alleges that approximately ₹600 crore in government funds was irregularly handled across 59 state departments, with around ₹55 crore reportedly transferred to private bank accounts and nearly ₹305 crore in transactions under suspicion. Around 400 people have reportedly faced FIRs in connection with the case.
Why is Congress demanding a CBI probe specifically?
Congress leader Mukesh Nayak argued that the scale of the alleged irregularities — spanning 59 departments — makes an internal or state-level inquiry insufficient. The party has demanded the investigation be conducted by the CBI under the supervision of a Supreme Court judge to ensure independence.
How much money has the Madhya Pradesh government reportedly recovered?
The state government has reportedly recovered ₹220 crore of an alleged ₹380-crore irregularity, according to Congress. However, the party has demanded that full date-wise, department-wise, and account-wise recovery details be made public, along with information on the amount still pending.
Who is Mukesh Nayak and what did he allege?
Mukesh Nayak is a former minister and the State Congress Media In-charge for Madhya Pradesh. At a press conference in Bhopal on 26 August, he alleged that government funds were transferred to private accounts through the treasury system and called for accountability to extend to senior officials, not just lower-level employees.
What are the next steps in this case?
The Madhya Pradesh government has not yet publicly responded to the specific allegations. The key question is whether the Centre will direct the CBI to take up the case — which typically requires either a state government request or a court order — making any judicial intervention the most likely catalyst for a formal federal investigation.
