The Enforcement Directorate (ED) has filed a prosecution complaint before a special court under the Prevention of Money Laundering Act (PMLA) in Indore in connection with an alleged ₹20.47-crore scam involving fraudulent clearance of bills and misappropriation of government funds from a Block Education Office in Madhya Pradesh.
The complaint has been filed against Kamal Rathore and five other accused persons in a case linked to the alleged diversion of public money earmarked for education programmes and welfare schemes. The special court has taken cognisance of the matter and issued notices to the accused, directing them to appear before the court.
According to the ED, the case pertains to large-scale financial irregularities at the Block Education Office (BEO) in Katthiwada block of Alirajpur district, where government funds were allegedly siphoned off over a prolonged period through manipulated and fraudulent bill clearances.
The agency initiated its investigation following the registration of a first information report by the local police, which was later followed by the filing of a chargesheet for offences under multiple provisions of the Indian Penal Code, the Information Technology Act and the Prevention of Corruption Act. The alleged offences relate to fraudulent payments amounting to ₹20.47 crore between April 2018 and July 2023 from the BEO’s treasury.
Certified Cyber Crime Investigator Course Launched by Centre for Police Technology
The ED’s probe under the PMLA found that the accused, acting in alleged collusion, systematically misappropriated government funds over nearly five years. Investigators said the money was intended for various education-related initiatives and welfare schemes, but was instead diverted through forged documents, false claims and manipulated records.
As part of the money laundering investigation, the ED conducted search operations under the provisions of the PMLA, leading to the seizure of incriminating documents and the freezing of bank balances amounting to ₹25 lakh. These searches, officials said, helped establish the trail of funds and the manner in which the proceeds of crime were generated and layered.
The main accused in the case was arrested by the ED in August last year and has remained in judicial custody since then. The agency stated that further financial analysis revealed that the proceeds of crime were used to acquire multiple immovable properties.
Following this, the ED provisionally attached 14 immovable properties linked to the accused persons, with an estimated value of ₹4.3 crore. These properties were identified as assets allegedly purchased using funds generated through the scam.
The prosecution complaint filed before the special court has arraigned six individuals as key conspirators in the alleged offence. The ED said the complaint details the role of each accused and outlines how public funds were diverted, laundered and eventually converted into assets.
Officials said the filing of the prosecution complaint marks a significant step in the case, as it brings the accused to trial under the stringent provisions of the money laundering law. Conviction under the PMLA can attract rigorous imprisonment and confiscation of tainted assets.
The agency has indicated that further investigation is still underway to identify additional assets, beneficiaries and possible links to other financial irregularities. Sources said the probe is also examining whether similar patterns of fund diversion occurred in other offices or schemes.
The case has drawn attention due to the scale of the alleged fraud and its impact on education-related programmes in a tribal-dominated district. Authorities said the investigation aims to ensure accountability and recovery of public money siphoned off through financial manipulation.
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.
