ED attaches ₹3.48 crore properties in Indore IMC fake bill scam
Synopsis
The ED has now attached over ₹59 crore in assets tied to the Indore Municipal Corporation fake bill scam — a scheme where contractor firms and civic officials allegedly fabricated work orders and bills to drain ₹103.62 crore from the public treasury. With three arrests, 52 properties attached, and searches still ongoing, this is one of the largest municipal fraud recoveries in Madhya Pradesh in recent years.
Key Takeaways
The ED provisionally attached nine properties worth ₹3.48 crore on 25 July in the Indore IMC fake bill scam .
Total immovable properties attached across two orders now stand at ₹37.14 crore (covering 52 properties ).
Cash, valuables, and assets worth ₹22.04 crore were separately seized; combined recoveries total ₹59.18 crore .
The alleged fraud involved contractor firms and IMC officials siphoning ₹103.62 crore through forged bills and fabricated work orders.
Three accused — Abhay Singh Rathore , Mohd.
Zakir , and Rahul Badera — were arrested on 1 June 2026 and remain in judicial custody.
The Enforcement Directorate (ED) has provisionally attached nine immovable properties worth ₹3.48 crore in connection with the Indore Municipal Corporation (IMC) fake bill scam, the agency confirmed on 25 July. The action was carried out by the Indore Sub-Zonal Office under the Prevention of Money Laundering Act (PMLA), 2002, as part of a continuing investigation into the large-scale siphoning of public funds.
Properties Attached
The attached assets span residential houses, flats, residential plots, commercial shops, and agricultural land situated across Indore and Dhar districts of Madhya Pradesh. These properties are registered in the names of accused individuals, beneficiaries, and their family members or co-owners, according to the agency.
How the Scam Operated
The ED launched its probe on the basis of multiple First Information Reports (FIRs) registered at Police Station MG Road, Indore. Investigators found that contractor firms, allegedly acting in concert with IMC officials and personnel from the Local Fund Audit and Resident Audit Department, fabricated work-order files, forged measurement books, and submitted fake bills against the municipal treasury. In several instances, the works cited in the bills had either never been executed or had already been completed under legitimate work orders. Through this modus operandi, public funds totalling ₹103.62 crore were allegedly siphoned from the IMC treasury.
The illegally obtained money was reportedly withdrawn in cash and then distributed among contractors, public servants, and other beneficiaries. It was also transferred to related entities, commingled with other funds, and deployed for asset acquisition and personal expenditure.
Scale of Recoveries So Far
This latest attachment follows an earlier provisional attachment order issued on 3 July 2025, which covered 43 immovable properties valued at approximately ₹33.65 crore. With the fresh action, the total value of immovable properties provisionally attached in the case now stands at approximately ₹37.14 crore.
In addition, searches conducted under Section 17 of the PMLA at premises linked to the accused led to the seizure and freezing of cash, valuables, and other assets worth around ₹22.04 crore. The combined value of all attachments and seizures in the case currently totals ₹59.18 crore.
Arrests and Custody
The ED had earlier arrested three accused — Abhay Singh Rathore, Mohd. Zakir, and Rahul Badera — on 1 June 2026 under Section 19 of the PMLA. All three remain in judicial custody. The agency has indicated that further investigation is ongoing, suggesting additional action cannot be ruled out.
Point of View
But the alleged ₹103.62 crore drained from the treasury means nearly half the siphoned funds remain unaccounted for. The real accountability question is how forged work orders and fabricated measurement books passed through multiple layers of municipal oversight undetected — and for how long.
NationPress
25 Jul 2026
Frequently Asked Questions
What is the Indore Municipal Corporation fake bill scam?
The IMC fake bill scam involves the alleged fraudulent withdrawal of ₹103.62 crore from the Indore Municipal Corporation treasury through forged work orders, fabricated measurement books, and fake bills. Contractor firms allegedly colluded with IMC officials and audit department personnel to process payments for works that were never done or had already been completed.
How much has the ED recovered so far in this case?
The ED has provisionally attached immovable properties worth approximately ₹37.14 crore across two orders, and separately seized cash and assets worth around ₹22.04 crore. The combined value of attachments and seizures currently stands at ₹59.18 crore.
Who has been arrested in the Indore IMC scam?
The ED arrested three persons — Abhay Singh Rathore, Mohd. Zakir, and Rahul Badera — on 1 June 2026 under Section 19 of the PMLA. All three are currently in judicial custody, and the investigation is ongoing.
What properties were attached in the latest ED order?
The latest order covers nine immovable properties valued at ₹3.48 crore, including residential houses, flats, plots, commercial shops, and agricultural land in Indore and Dhar districts of Madhya Pradesh. The properties are held in the names of accused persons, beneficiaries, and their family members.
What was the earlier ED attachment in this case?
On 3 July 2025, the ED had issued a provisional attachment order covering 43 immovable properties worth approximately ₹33.65 crore. The latest action on 25 July adds nine more properties, bringing the total to 52 properties valued at around ₹37.14 crore.
