New Delhi [India], June 3 (ANI): The Enforcement Directorate (ED) on Wednesday said it has arrested three key accused persons in connection with a money laundering investigation based on the Rs 119.53 crore Indore Municipal Corporation (IMC) fake bill scam.

The arrested individuals have been identified as Abhay Singh Rathore, Mohd Zakir and Rahul Badera. They were taken into custody on June 1 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, officials said.

The accused were produced before the Special PMLA Court in Indore, which granted ED custody till June 5 for further interrogation and investigation.

ED initiated the probe based on multiple First Information Reports (FIRs) registered by Police Station MG Road, Indore, along with subsequent chargesheets filed under various provisions of the Indian Penal Code, 1860. The cases pertain to alleged fraudulent withdrawal of funds from the Indore Municipal Corporation treasury through fake bills, forged work orders, fabricated records and execution of non-existent project works.

According to the agency, its investigation has revealed that during the period between 2018 and 2023, fake and bogus bills amounting to approximately Rs 119.53 crore were submitted to the IMC in respect of non-existent works.

'On the basis of such forged and fabricated bills, fraudulent disbursements amounting to approximately Rs 86.54 crore were made from the IMC treasury,' said the ED.

Further investigation under PMLA, 2002, revealed that before 2018, public funds amounting to approximately Rs 6.22 crore were siphoned off through a similar modus operandi, it said.

Accordingly, the federal agency stated, the total fraud amount has been quantified at approximately Rs 92.76 crore, which constitutes Proceeds of Crime under PMLA, 2002.

ED's investigation has also revealed that the accused individuals submitted fabricated bills to the IMC, which were subsequently disbursed to firms under their control. 'However, these firms carried out no actual work in return for the payments, thereby causing wrongful loss to the IMC and unlawful gain to the accused persons.'

It was further revealed that Abhay Singh Rathore, then Assistant Engineer, IMC, emerged as one of the principal conspirators in the scam and played a key role in facilitating the preparation and processing of fake work orders, it said.

'That contractors Mohd Zakir and Rahul Badera, through firms owned and controlled by them, received approximately Rs 71.78 crore from the treasury of Indore Municipal Corporation against fake and bogus bills forming part of the present investigation, thus playing an active role in preparation, submission and processing of such fake bills and the subsequent distribution of fraud proceeds amongst various beneficiaries involved in the conspiracy.'

Earlier, ED had conducted searches under Section 17 of the PMLA, 2002, resulting in seizure of cash and valuables worth approximately Rs 22.04 crore. Subsequently, immovable properties having an approximate value of Rs 34 crore were provisionally attached vide Provisional Attachment order dated July 3, 2025, under the provisions of the PMLA, 2002.

ED added that the investigation is continuing to trace the remaining Proceeds of Crime, identify additional assets acquired therefrom and ascertain the complete money trail. (ANI)