ED Cracks Down On Rs 20 Crore Embezzlement In MP Assets Frozen

(MENAFN- IANS) Bhopal, June 26 (IANS) The Directorate of Enforcement (ED) carried out search operations at six locations linked to officials of the Block Education Office (BEO), Kathiwada in Alirajpur district, Madhya Pradesh, on June 24 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

The operation follows an investigation initiated by the ED on the basis of an FIR and charge-sheet filed by Madhya Pradesh Police regarding suspicious financial activities between April 2018 and July 2023.

The ED's inquiry focuses on alleged fraudulent payments amounting to approximately Rs 20 crore originating from the treasury of the Block Education Office, Kathiwada.

During the searches, three bank accounts with a combined balance of about Rs 25 lakh were frozen, the ED said in a statement.

Additionally, several documents related to immovable assets were seized. Preliminary findings suggest a widespread embezzlement scheme in which funds were siphoned off using fake billing practices, it said.

According to investigators, the misappropriated funds were funnelled into multiple personal accounts through manipulation of the state's Integrated Financial Management System (IFMS), effectively bypassing standard financial protocols.

It was also discovered that around Rs 9 crore from these fraudulent transactions was withdrawn in cash, raising further concerns about the scale and manner of fund diversion.

The ED has stated that the funds, originally allocated for educational administration and public welfare, appear to have been systematically misused by individuals entrusted with public responsibilities.

The agency's action aims to trace the money trail, identify beneficiaries, and dismantle the larger network involved in the financial misconduct.

The search operations were part of the Bhopal Zonal Office's coordinated crackdown on institutional financial irregularities. The ED emphasized that it would continue to probe deeper into the case and pursue legal action against all involved entities. As investigations continue, authorities anticipate further revelations and possible arrests.

The case underscores the growing scrutiny on government expenditure processes and the ED's intensified focus on curbing corruption at the administrative level in Madhya Pradesh.

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