The Enforcement Directorate (ED), Indore Sub Zonal Office, has filed a prosecution complaint before the special court for Prevention of Money Laundering Act (PMLA) cases in Indore against Rajesh Kothari, seeking his trial for the offence of money laundering under the provisions of the PMLA, 2002.
The prosecution complaint was filed on November 28, 2025. The special PMLA court subsequently took cognisance of the matter and issued notices to the accused on December 16, 2025, directing him to appear before the court.
According to the ED, the case relates to allegations that Rajesh Kothari accumulated assets far in excess of his known sources of income while serving in various senior positions within the Indore Municipal Corporation. The accused had held posts including Assistant Health Officer, Health Officer and Removal Officer during his service tenure.
The money laundering investigation was initiated on the basis of a first information report registered in July 2011, followed by a chargesheet filed in March 2020 by the Lokayukta Police under provisions of the Prevention of Corruption Act, 1988. The chargesheet alleged that Kothari had indulged in large-scale corruption during his service and had acquired movable and immovable properties in his own name as well as in the names of his family members.
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The ED stated that the chargesheet revealed that disproportionate assets worth approximately ₹2.51 crore were amassed by the accused during his period of service. These assets, investigators said, were allegedly accumulated through corrupt means and were not supported by legitimate income sources.
During the course of the PMLA investigation, the ED examined multiple properties acquired by Kothari and his family members. The agency found that there were no adequate or proportionate sources of income to justify the scale of assets acquired during his tenure with the municipal corporation. The accused, the ED said, was also unable to provide satisfactory explanations regarding the sources of funds used to purchase several immovable properties.
The investigation further revealed that Kothari and his family members had allegedly generated, acquired, possessed, used and concealed the proceeds of crime, while attempting to project the tainted assets as untainted property. According to the ED, this conduct attracts the offence of money laundering as defined under Section 3 of the PMLA, which is punishable under Section 4 of the Act.
As part of the probe, the ED identified two immovable properties with a combined value of ₹1.30 crore that were allegedly purchased using proceeds of crime directly generated from the scheduled offences under the Prevention of Corruption Act. These properties were provisionally attached under the provisions of the PMLA to prevent their transfer or disposal during the pendency of the proceedings.
Officials said the prosecution complaint filed before the special court outlines the manner in which the alleged proceeds of crime were generated, laundered and invested in assets, and details the role attributed to the accused in the process. The complaint seeks criminal prosecution of Kothari under the stringent provisions of the money laundering law.
The filing of the prosecution complaint marks a significant stage in the case, as it brings the accused within the ambit of trial proceedings under the PMLA. Conviction under the Act can lead to rigorous imprisonment and confiscation of assets determined to be proceeds of crime.
The ED has stated that further investigation in the matter is still underway. The agency is continuing to examine additional assets, financial transactions and potential links to other properties that may have been acquired using illicit funds.
The case has drawn attention due to its link with alleged corruption in a key civic body and the scale of assets reportedly amassed during public service. Officials said the investigation is aimed at ensuring accountability, deterring corruption and recovering public money allegedly siphoned off through abuse of official position.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
