Bhopal: The Directorate of Enforcement (ED), Bhopal Zonal Office, has filed a prosecution complaint under the Prevention of Money Laundering Act (PMLA), 2002 against Santosh Kumar Sharma, former in-charge principal of Government BEd College, Aterpur, and others. The complaint was filed on January 28, 2025, before the Special PMLA Court, Bhopal, which has also issued notices for pre-cognisance hearing in the matter.
The ED initiated the money-laundering investigation on the basis of an FIR registered by the Special Police Establishment, Lokayukta Office, Bhopal, against Santosh Kumar Sharma and others. The FIR was lodged under Sections 13(1)(e) read with 13(2) of the Prevention of Corruption Act, 1988, alleging acquisition of assets disproportionate to known sources of income.
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According to the ED, the probe revealed that while serving as a public servant, Sharma abused his official position and accumulated assets far exceeding his lawful income. The agency stated that the accused acquired disproportionate assets worth ₹1,23,32,057, which were not commensurate with his declared and known sources of income.
The investigation further found that Sharma and his family members were beneficiaries of the proceeds of crime. The ED alleged that the accused indulged in money laundering by concealing, layering and projecting the proceeds generated from the scheduled offence as untainted assets.
During the course of the probe, the ED, Bhopal Zonal Office, issued an interim attachment order No. 09/2025 dated August 29, 2025, provisionally attaching assets believed to have been acquired from the proceeds of crime. These included immovable properties valued at ₹1,19,09,000 and movable assets worth ₹3,52,671, taking the total value of attached assets to ₹1,22,61,571.
A detailed financial analysis carried out by the ED showed that during the check period, the accused earned a total legitimate income of ₹1,30,27,494, whereas his total expenditure and investments were assessed at ₹2,53,59,551. This resulted in disproportionate assets amounting to ₹1,23,32,057, which is approximately 95 per cent higher than his known lawful income, the agency said.
The ED alleged that Sharma acquired substantial movable and immovable properties not only in his own name but also in the names of his wife and other family members. This, the agency claimed, was done to conceal actual ownership and to camouflage assets generated from illegal sources as legitimate holdings.
Further investigation revealed that the acquisition of these properties involved unaccounted cash, unexplained bank deposits, and multi-layered financial transactions. The agency also noted that Sharma incurred significant personal and household expenses for which no verifiable source of income could be established.
According to the ED, the accused attempted to mix proceeds of crime with limited lawful income to give an appearance of legitimacy to the assets. Prima facie evidence, the agency said, points to a systematic abuse of public office, possession of disproportionate assets, and projection of illicit funds as clean money.
The ED stated that the acts attributed to the accused constitute offences under the Prevention of Corruption Act, 1988, which also qualify as scheduled offences under the PMLA, 2002, thereby attracting provisions of the money-laundering law.
The agency added that further legal proceedings are underway, and the investigation is continuing to trace additional assets and financial trails linked to the alleged laundering of proceeds of crime.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
