ED files 20,000-page chargesheet against 32 in IMC fake bill scam
Synopsis
The ED has filed a 20,000-page chargesheet against 32 people — including IMC officials and contractors — for allegedly siphoning ₹103.42 crore from the Indore Municipal Corporation through fake bills and forged work orders. With ₹59.18 crore in assets already seized and the alleged kingpin arrested, this is one of Madhya Pradesh's largest civic-body money-laundering prosecutions.
Key Takeaways
The ED filed a 20,000-page chargesheet on 24 July before the Special Court (PMLA), Indore against 32 accused in the IMC fake bill scam .
Accused allegedly siphoned approximately ₹103.42 crore from the Indore Municipal Corporation treasury using fake bills, forged work orders, and fabricated records.
Searches at 20 premises on 5–6 August 2024 led to seizure and freezing of assets worth approximately ₹22.04 crore .
52 immovable properties valued at approximately ₹37.14 crore have been provisionally attached across Madhya Pradesh and Uttar Pradesh .
Total assets provisionally attached, seized, or frozen stand at approximately ₹59.18 crore .
Alleged kingpin Abhay Singh Rathore , along with Mohd Zakir and Rahul Badera , has been arrested under Section 19 of the PMLA .
The Directorate of Enforcement (ED), Indore Sub-Zonal Office, has filed a 20,000-page chargesheet under the Prevention of Money Laundering Act (PMLA), 2002, before the Special Court (PMLA), Indore, naming 32 accused persons in the Indore Municipal Corporation (IMC) fake bill scam. The chargesheet, filed on 24 July, targets contractor beneficiaries, IMC officials, local fund audit and resident audit office personnel, and private individuals accused of concealing and laundering proceeds of crime.
How the Fraud Was Engineered
According to the ED, the accused contractor firms, acting in connivance with IMC officials and audit office personnel, fabricated work-order files, fake bills, forged measurement books, false completion certificates, and manipulated note-sheets. The works covered by these documents were either never executed or had already been completed under legitimate work orders.
Through this mechanism, the accused allegedly siphoned off approximately ₹103.42 crore from the IMC treasury. The fraudulently withdrawn funds were distributed in cash among contractors, public servants, and other beneficiaries, and were also routed through associated entities under the guise of business transactions — a classic layering strategy under money-laundering frameworks.
Assets Seized and Attached
The ED conducted searches at 20 premises on 5 and 6 August 2024, leading to the seizure and freezing of assets worth approximately ₹22.04 crore — including cash, bank balances, fixed deposits, demat holdings, and mutual funds — alongside incriminating documents and digital evidence.
Subsequently, the agency provisionally attached 52 immovable properties valued at approximately ₹37.14 crore through two provisional attachment orders under the PMLA. The attached properties include commercial buildings, residential houses, plots, and agricultural lands spread across Madhya Pradesh and Uttar Pradesh. In aggregate, assets worth approximately ₹59.18 crore have been provisionally attached, seized, or frozen in the case so far.
Key Arrests Made
The ED arrested the alleged mastermind of the scam, Abhay Singh Rathore, along with Mohd Zakir and Rahul Badera, under Section 19 of the PMLA, 2002, for their central roles in designing and laundering the proceeds of crime. The three are among the 32 named in the chargesheet.
What Happens Next
The Special Court (PMLA), Indore has issued notices and summons to all accused persons, and the matter has been listed for further proceedings. The ED is also seeking confiscation of all attached, seized, and frozen properties under PMLA provisions. This is one of the largest municipal-level money-laundering prosecutions in Madhya Pradesh in recent years, and its outcome could set a precedent for how civic-body fraud cases are pursued under the PMLA.
Point of View
000-page chargesheet against 32 accused is a statement of investigative intent, but volume alone does not guarantee conviction. The ED's case rests heavily on establishing a traceable money trail — cash distributions, layering through associated entities, and asset acquisition — which PMLA courts scrutinise rigorously. What stands out here is the alleged systemic rot: fake bills, forged measurement books, and manipulated note-sheets imply institutional complicity, not just rogue contractors. If the Special Court upholds the chargesheet and confirms confiscation of the ₹59.18 crore in attached assets, it would signal a meaningful escalation in how India pursues civic-body corruption under the PMLA — a framework that has historically been more effective against financial institutions than municipal fraudsters.
NationPress
27 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 approximately ₹103.42 crore from the Indore Municipal Corporation treasury through fake bills, forged work orders, fabricated measurement books, and false completion certificates. The works covered by these documents were either never carried out or had already been completed under genuine orders.
How many people have been chargesheeted by the ED in the IMC scam?
The ED has filed a chargesheet against 32 accused persons, including contractor beneficiaries, IMC officials, local fund audit and resident audit office personnel, and private individuals who allegedly aided in concealing and laundering the proceeds of crime.
How much money has the ED seized or attached in the IMC scam case?
Assets worth approximately ₹59.18 crore have been provisionally attached, seized, or frozen in total. This includes ₹22.04 crore in cash, bank balances, fixed deposits, demat holdings, and mutual funds, plus 52 immovable properties valued at approximately ₹37.14 crore across Madhya Pradesh and Uttar Pradesh.
Who is Abhay Singh Rathore and why was he arrested?
Abhay Singh Rathore is identified by the ED as the alleged kingpin of the IMC fake bill scam. He was arrested under Section 19 of the PMLA, 2002, for his central role in designing and laundering the proceeds of crime, along with co-accused Mohd Zakir and Rahul Badera.
What happens next in the IMC fake bill scam case?
The Special Court (PMLA), Indore has issued notices and summons to all 32 accused persons, and the matter is listed for further proceedings. The ED is also seeking confiscation of all attached, seized, and frozen properties under the provisions of the PMLA, 2002.
