A massive financial fraud has been uncovered inside the Bhopal Municipal Corporation, with the Lokayukta's Special Police Establishment registering an FIR against the corporation's Additional Commissioner of Finance and several other officials. The accused allegedly ran a sophisticated fake billing operation through the corporation's SAP software, siphoning crores of rupees into accounts of fictitious firms linked to their own relatives and acquaintances.

How the Scam Worked

The fraud was built on a simple but brazen mechanism. Gunwant Sewatkar, the Additional Commissioner handling the Finance department of Bhopal Municipal Corporation, along with other employees, allegedly created fake e-bills for work that was never carried out.

These fabricated bills were generated across three key departments — the Central Workshop also known as the Motor Workshop, the Water Works Department, and the General Administration Department. Once the fake bills were created, they were entered into the corporation's financial system using SAP software — the same enterprise software meant to ensure transparency and accountability in government billing.

After the entries were made in the system, large sums of money were transferred directly into accounts of fake firms. These firms were allegedly linked to the personal network of the accused, including acquaintances and relatives.

Lokayukta Raids Server Room, Seizes SAP Hard Disk

Acting on the findings, Lokayukta police obtained a search warrant from the court and conducted a detailed raid at the Bhopal Municipal Corporation's server centre. The hard disk containing the SAP software data was seized, as investigators believe it holds crucial digital records of the fraudulent transactions.

The raid and seizure of the server data marks a significant step in establishing a digital evidence trail of the scam, making it harder for the accused to deny or destroy records of the fake billing entries.

Additional Commissioner Removed Just Before Budget

Following the Lokayukta FIR and the confirmation of his involvement, Gunwant Sewatkar was stripped of his Finance department charge by the Municipal Commissioner. The removal came just days before the corporation's budget was scheduled to be presented — a timing that has drawn significant attention.

The Finance portfolio has been handed over to another officer. The abrupt transfer at such a financially sensitive time has raised questions about how long the fraud had been ongoing and whether it could have affected budget planning and fund allocations for the current financial year.

Part of a Larger Pattern at BMC

This latest FIR is not the first time Bhopal Municipal Corporation has found itself at the centre of a corruption investigation. Earlier in March 2026, a separate scam related to the Sambal Yojana — a welfare scheme — had surfaced at the same corporation. An officer had been suspended in that case, and FIRs were registered against 17 individuals. The Lokayukta's Special Police Establishment was already investigating that matter when this fresh fake billing fraud came to light.

The back-to-back scandals at one of Madhya Pradesh's most prominent civic bodies have intensified scrutiny over internal oversight mechanisms, audit processes, and the role of senior officials in approving payments without adequate verification.

Investigation Underway

The Lokayukta has registered the case under sections related to cheating, forgery, and criminal conspiracy. Further investigation is currently underway to establish the full scale of the fraud, identify all accused, and trace the total amount siphoned through the fake billing network.