The Indore Municipal Corporation (IMC) has taken major action in an alleged building permit fraud by cancelling the licences of five engineers and consultants accused of misusing the civic body’s online ‘deemed approval’ system. The action follows an investigation that uncovered suspected irregularities in the digital building approval process, including under-reporting of construction areas to reduce approval charges and future property tax liabilities. The civic body has now launched a comprehensive review of all building permissions issued through the online platform.
According to the IMC, the automated deemed approval system was introduced to grant building permissions for smaller structures within 24 hours without manual intervention, making the approval process faster and more transparent. However, the preliminary investigation found that certain applicants, along with technical consultants, allegedly exploited the system by declaring smaller built-up areas than the actual construction, thereby reducing development charges and other applicable fees. Authorities also suspect that the practice was intended to lower future property tax assessments.
As part of the investigation, the civic body examined nearly 300 online building permissions issued over a two-month period. Based on the findings, notices were earlier served to 47 property owners and consultants. The scrutiny reportedly revealed multiple irregularities, including suppression of the actual construction area, submission of inaccurate information in official records, and false declarations showing already developed plots as vacant land to obtain approvals.
Investigators also found instances where plots that had already been constructed upon were falsely projected as vacant properties. According to officials, such declarations allegedly enabled applicants to obtain approvals at lower charges while bypassing regulatory requirements. In addition, the investigation revealed cases in which separate plots were allegedly merged illegally to facilitate unauthorised joint constructions.
Municipal authorities said the issue goes beyond isolated violations and reflects systematic misuse of the digital approval mechanism. Consequently, the IMC has initiated a fresh verification of all building permissions issued through the online platform. Officials stated that any outstanding financial dues identified during the review would be recovered from the concerned parties, and further action would be taken in accordance with applicable regulations.
The licences cancelled by the civic body belong to Bharat Panchal, Rahul Sharma, Yogesh Jain, Devendra Patel and Ashutosh Sankhla. Following the cancellation, all five professionals have been barred from undertaking building permission-related professional work within the jurisdiction of the Indore Municipal Corporation.
The IMC has indicated that the investigation remains ongoing and that similar action may be initiated against additional property owners, consultants or other individuals if further irregularities are detected. The civic body is also working on strengthening the digital approval system by introducing technical and administrative safeguards to prevent similar misuse in the future.
Municipal officials said ensuring transparency, accountability and compliance in the building permission process remains a top priority. As part of the continuing probe, authorities are conducting a detailed examination of digital records, reassessing financial liabilities and initiating strict action wherever violations are established. The IMC has stated that further administrative and legal measures will be taken based on the outcome of the ongoing investigation to safeguard the integrity of the building approval system.
