The Directorate of Enforcement (ED), Indore Sub-Zonal Office, intensified its crackdown on a significant government fund embezzlement scam by submitting a supplementary chargesheet to the Special Judge (PMLA), Indore, on July 9, 2026. This case involves the fraudulent misappropriation of Rs 20.47 crore from the Block Education Office (BEO), Katthiwada, in Alirajpur district of Madhya Pradesh.
Following an FIR at Police Station Katthiwada, the ED launched an investigation. The probe revealed that Kamal Rathore, along with other accused individuals, orchestrated the fraudulent clearance of bills from 2018 to 2023, leading to the illegal withdrawal of government funds from the Alirajpur Treasury.
The illicit proceeds were allegedly channeled through multiple bank accounts controlled by Rathore and his family members. These funds were then withdrawn in cash and used to buy agricultural land in Gandhwani tehsil of Dhar district.
In an attempt to disguise the money’s illegal source, the accused transformed the purchased land into a residential plotting project named “Shri Balaji Dham.” This strategy aimed to present the tainted assets as lawful investments.
The ED had previously conducted searches under the PMLA, resulting in the confiscation of incriminating documents and the freezing of numerous bank accounts. The agency provisionally attached assets worth Rs 4.43 crore belonging to the accused, a decision later affirmed by the adjudicating authority on March 10, 2026.
Further investigations revealed the conversion of the agricultural land into 56 residential plots under the “Shri Balaji Dham” project. The ED promptly attached these plots through a provisional order dated June 23, 2026, with the market value of these properties exceeding Rs 6 crore.
This supplementary complaint supplements the initial chargesheet filed by the ED against Kamal Rathore and others on September 29, 2025. The Special Court (PMLA), Indore, has acknowledged the new filing and issued notices to the accused individuals.
