MP: Court convicts three in Jabalpur provident fund scam; main accused died during trial

Jabalpur, Aug 21 In a landmark judgment, the Special Court under the Prevention of Money Laundering Act (PMLA) in Jabalpur has convicted three individuals - Vineeta Gaur, Shishir Gaur, and Sunita Gaur - for laundering proceeds of crime linked to a massive Provident Fund scam designed by the late Suryakant Gaur, a former Assistant Accounts Officer in the Controller of Defence Accounts (CDA), Jabalpur.

The court, in its order dated August 20, sentenced each of the accused to three years of rigorous imprisonment and imposed a fine of Rs 10,000. The main accused, Suryakant Gaur, passed away during the trial, but the court held that his family members knowingly participated in concealing and projecting illicit funds as legitimate income.

The Special Court found that the convicted individuals—Shishir, Vineeta, and Sunita Gaur—were complicit in laundering the proceeds of crime.

They were directly and indirectly involved in acquiring, possessing, and using the illicit funds, and actively assisted in projecting them as untainted property.

The court concluded that their actions met the threshold of money laundering under Section 3 of the PMLA, 2002. His (Suryakant Gaur’s) role involved handling Provident Fund claims, preparing cheques, and ensuring disbursement after approvals.

Instead, he diverted funds meant for genuine PF account holders into bank accounts held by himself, his family members, and close associates.

During the check period between April 2005 and July 2010, Gaur amassed assets worth Rs 90,85,901—an amount grossly disproportionate to his known sources of income, with a staggering asset ratio of 304.86 per cent.

According to the Enforcement Directorate (ED), which initiated its investigation in 2011 based on a Central Bureau of Investigation (CBI) FIR under Sections 13(1)(e) and 13(2) of the Prevention of Corruption Act, 1988, Suryakant Gaur abused his official position in the Bill Processing Section of the CDA.

The ED subsequently provisionally attached movable and immovable assets worth Rs 50,38,678 on March 28, 2013, a move later confirmed by the Adjudicating Authority under PMLA in New Delhi.

A prosecution complaint was filed by the ED on March 21, 2014, and after years of legal proceedings, the court has now delivered its verdict. The conviction underscores the judiciary’s resolve to hold not only corrupt officials but also their enablers accountable under the law.

This case serves as a stark reminder of the systemic vulnerabilities in public financial management and the importance of vigilance in safeguarding public funds.

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