Bhopal, Oct 7 In a major crackdown on financial fraud, the Directorate of Enforcement (ED), Bhopal, conducted search operations on October 3 across seven locations in Bhopal, Vidisha, Katni, and Chhatarpur districts.
The raids were carried out under the Prevention of Money Laundering Act (PMLA), 2002, targeting Shobhit Tripathi, former CEO of Janpad Panchayat Sironj, and his alleged accomplices, an ED statement said.
The searches led to the seizure of incriminating documents, digital devices, and the freezing of bank accounts and mutual funds worth Rs 21.7 lakh linked to Tripathi and others, the statement said.
The ED’s investigation stems from an FIR filed by the Economic Offense Wing, Bhopal, under various sections of the IPC, 1860, and the Prevention of Corruption Act, 1988.
Tripathi is accused of orchestrating a massive embezzlement of approximately Rs 30.18 crore through the Madhya Pradesh government's Marriage Assistance Scheme between 2019 and November 2021.
The scheme, designed to support the families of registered construction workers, was allegedly exploited by Tripathi and data entry operators Yogendra Sharma and Hemant Sahu.
According to ED findings, the trio fabricated documents and uploaded fraudulent data to the government portal, enabling the transfer of funds to ineligible beneficiaries.
These funds were then withdrawn in multiple tranches via ATMs and funnelled into accounts belonging to Tripathi, his family members, and associated entities.
To mask the illicit origins of the money, Tripathi reportedly layered the proceeds through relatives’ bank accounts and business concerns, projecting them as legitimate income.
The laundered funds were used for personal expenditures, investments in the stock market and mutual funds, and the acquisition of immovable properties. This case highlights the vulnerabilities in welfare schemes and the need for robust digital safeguards, said the statement.
The ED’s swift action underscores its commitment to curbing corruption and financial crimes in public administration.
Further investigation is ongoing, and more revelations are expected as authorities dig deeper into the network of transactions and beneficiaries involved in the scam.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor