ED files supplementary chargesheet in MP Edu Dept ₹20.47 crore treasury fraud
Synopsis
The ED has filed a supplementary chargesheet in a ₹20.47 crore government education fund scam in Madhya Pradesh, revealing how accused Kamal Rathore allegedly laundered money through a residential plotting project called 'Shri Balaji Dham' — built on agricultural land bought with stolen public funds. Total attached assets now exceed ₹10 crore.
Key Takeaways
The ED, Indore Sub-Zonal Office filed a supplementary chargesheet on 9 July 2026 before the Special Judge (PMLA), Indore.
The case involves fraudulent misappropriation of ₹20.47 crore from the Block Education Office, Katthiwada , Alirajpur, between 2018 and 2023 .
Accused Kamal Rathore allegedly routed proceeds through family bank accounts and purchased agricultural land in Gandhwani tehsil, Dhar district .
The land was developed into a 56-plot residential project named 'Shri Balaji Dham' ; all plots attached via order dated 23 June 2026 , valued at over ₹6 crore .
Earlier asset attachments worth ₹4.43 crore were confirmed by the adjudicating authority on 10 March 2026 .
The Special Court (PMLA), Indore has taken cognisance and issued notices to the accused.
The Directorate of Enforcement (ED), Indore Sub-Zonal Office, filed a supplementary chargesheet before the Special Judge (PMLA), Indore, on 9 July 2026, escalating its money-laundering probe into the fraudulent misappropriation of ₹20.47 crore from the Block Education Office (BEO), Katthiwada, in Alirajpur district, Madhya Pradesh. The case, rooted in a multi-year embezzlement scheme targeting government education funds, has now seen asset attachments exceeding ₹10 crore in total value.
How the Fraud Was Orchestrated
The ED launched its investigation under the Prevention of Money Laundering Act (PMLA) following an FIR registered at Police Station Katthiwada. According to the agency, Kamal Rathore, in alleged collusion with other accused persons, engineered the fraudulent clearance of government bills between 2018 and 2023, enabling the illegal withdrawal of public funds from the Alirajpur Treasury.
The proceeds of crime were allegedly routed through multiple bank accounts held by Rathore and his family members, subsequently withdrawn in cash and deployed to purchase agricultural land in Gandhwani tehsil, Dhar district.
Land Converted Into Residential Project to Conceal Funds
In an apparent bid to launder the ill-gotten funds, the accused allegedly developed the acquired agricultural land into a residential plotting scheme named 'Shri Balaji Dham' — a move investigators say was designed to project tainted assets as legitimate real-estate investments. The land was subdivided into 56 residential plots under this project.
The ED issued a provisional attachment order dated 23 June 2026, seizing all 56 plots. The market value of these attached properties is reported to exceed ₹6 crore.
Earlier Searches and Asset Freezes
Prior to the supplementary chargesheet, the ED had conducted searches under the PMLA, leading to the seizure of incriminating documents and the freezing of multiple bank accounts. The agency provisionally attached assets worth ₹4.43 crore belonging to the accused — a decision confirmed by the adjudicating authority on 10 March 2026.
The initial chargesheet against Kamal Rathore and others was filed on 29 September 2025. The latest supplementary complaint builds upon that foundation, adding fresh evidence gathered during continued investigation.
Court Takes Cognisance
The Special Court (PMLA), Indore, has taken cognisance of the supplementary filing and issued notices to the accused persons. The case signals a broader enforcement push against the misuse of government education funds in Madhya Pradesh, with investigators continuing to trace additional proceeds of crime. Further developments are expected as the court proceedings advance.
Point of View
Not just individual wrongdoing. The ED's move to attach 56 residential plots — affecting potential buyers — adds a civilian dimension to what began as a government-funds case, and that collateral impact deserves scrutiny as proceedings continue.
NationPress
10 Jul 2026
Frequently Asked Questions
What is the ED chargesheet filed in the Madhya Pradesh education treasury fraud case?
The ED filed a supplementary chargesheet on 9 July 2026 before the Special Judge (PMLA), Indore, in a case involving the fraudulent misappropriation of ₹20.47 crore from the Block Education Office, Katthiwada, in Alirajpur district. It builds on an initial chargesheet filed against Kamal Rathore and others on 29 September 2025.
Who is the main accused in the Alirajpur BEO treasury fraud case?
The primary accused is Kamal Rathore, who allegedly orchestrated the fraudulent clearance of government bills between 2018 and 2023 in collusion with other persons, enabling the illegal withdrawal of ₹20.47 crore from the Alirajpur Treasury.
How was the stolen money allegedly laundered?
According to the ED, the proceeds were routed through multiple bank accounts of Rathore and his family members, withdrawn in cash, and used to buy agricultural land in Gandhwani tehsil, Dhar district. The land was then developed into a 56-plot residential project called 'Shri Balaji Dham' to project the funds as legitimate investments.
What assets has the ED attached in this case?
The ED has attached assets worth ₹4.43 crore (confirmed by the adjudicating authority on 10 March 2026) and subsequently attached 56 residential plots under the 'Shri Balaji Dham' project via an order dated 23 June 2026, with a reported market value exceeding ₹6 crore.
What happens next in the case?
The Special Court (PMLA), Indore, has taken cognisance of the supplementary chargesheet and issued notices to the accused. The case will now proceed to trial, with further investigation continuing to trace additional proceeds of crime.
