FIR against contractor for forged bank guarantee in MP government project
Synopsis
A contractor joint venture in Madhya Pradesh allegedly submitted a forged bank guarantee to grab four government construction packages — and got caught during routine verification. MPUDC's swift FIR under the BNS sends a clear signal that document fraud in public tenders will not go unchallenged, as authorities tighten scrutiny across the state's infrastructure pipeline.
Key Takeaways
An FIR was registered on 5 August at MP Nagar police station, Bhopal against a contractor joint venture for allegedly submitting a forged bank guarantee.
The accused entities are South Gujarat Construction Company Private Limited and Engineering Professional Company Private Limited .
The forged document was submitted to secure four construction packages under MPUDC .
Case registered under BNS Sections 318(4), 336(3), 338 and 340(2) — covering cheating, forgery, and use of forged documents.
MPUDC MD Sanket Bhondve directed legal action and reiterated a zero-tolerance policy on fraud in government works.
A contractor has been booked under multiple sections of the Bharatiya Nyaya Sanhita (BNS) for allegedly submitting a forged bank guarantee to secure four construction packages under the Madhya Pradesh Urban Development Company (MPUDC), officials confirmed on 5 August. The case was registered at the MP Nagar police station in Bhopal following a formal complaint by MPUDC.
Who Is Accused and What Was Alleged
The FIR names the joint venture of South Gujarat Construction Company Private Limited and Engineering Professional Company Private Limited. According to officials, the contractor had submitted a bank guarantee as part of the mandatory tender documentation for the four packages. Suspicion over the document's authenticity surfaced during routine verification by MPUDC.
How the Fraud Was Detected
A detailed internal inquiry by MPUDC concluded that the bank guarantee was forged. Following the findings, Urban Administration and Development Commissioner and MPUDC Managing Director Sanket Bhondve directed officials to initiate legal proceedings. 'We found the bank guarantee submitted by the contractor to be forged during verification. Acting on the findings, instructions were issued to lodge an FIR and initiate legal proceedings,' Bhondve said.
Legal Sections Invoked
Police registered the case under Sections 318(4), 336(3), 338 and 340(2) of the BNS. Section 318(4) covers cheating and dishonestly inducing delivery of property or valuable documents; Section 336(3) addresses forgery of documents or electronic records with intent to commit fraud; Section 338 pertains specifically to forgery of valuable security, including bank guarantees; and Section 340(2) deals with using forged documents as genuine.
Government's Zero-Tolerance Stance
Bhondve emphasised that the department has adopted a zero-tolerance approach towards fraud in government works. 'Any attempt to submit forged documents or indulge in financial irregularities in government projects will be dealt with strictly under the law,' he added. Police confirmed that the authenticity of all documents and the role of those involved are under active investigation, with further action to follow based on findings.
Broader Context
The case comes amid heightened scrutiny of contractor-submitted documents across government infrastructure projects in Madhya Pradesh. Authorities have reportedly stepped up verification protocols to prevent fraud and safeguard public funds. Notably, forged bank guarantees in public tenders represent a recurring vulnerability in government procurement, allowing ineligible or financially weak contractors to win contracts they may not be able to execute.
Point of View
Rather than a bank or third-party audit, raises questions about whether verification protocols are robust enough across all government procurement in Madhya Pradesh. The invocation of multiple BNS sections signals prosecutorial intent, but conviction rates in document-fraud cases remain low without forensic banking evidence. The real deterrent will come not from FIRs alone, but from blacklisting mechanisms and real-time bank confirmation systems that states have been slow to adopt.
NationPress
5 Aug 2026
Frequently Asked Questions
What is the MPUDC forged bank guarantee case in Bhopal?
An FIR has been filed against a contractor joint venture — South Gujarat Construction Company Private Limited and Engineering Professional Company Private Limited — for allegedly submitting a forged bank guarantee to secure four construction packages under the Madhya Pradesh Urban Development Company (MPUDC). The case was registered at MP Nagar police station in Bhopal on 5 August.
Which legal sections have been invoked in the MPUDC fraud case?
Police registered the case under BNS Sections 318(4), 336(3), 338, and 340(2), covering cheating, forgery of documents with intent to commit fraud, forgery of valuable security such as bank guarantees, and using forged documents as genuine.
How was the forged bank guarantee discovered?
Suspicion arose during routine verification of tender documents submitted by the contractor. A subsequent detailed inquiry by MPUDC confirmed the bank guarantee was forged, prompting MPUDC Managing Director Sanket Bhondve to direct officials to file an FIR.
What is the government's response to the fraud?
MPUDC MD Sanket Bhondve stated that the department has adopted a zero-tolerance approach to fraud in government works and warned that any submission of forged documents or financial irregularities in public projects will be dealt with strictly under the law.
What happens next in the investigation?
Police are investigating the authenticity of all documents involved and examining the roles of all parties in the joint venture. Further action, including potential arrests or additional charges, will be taken based on the investigation's findings.
