The matter pertains to a question raised during the July 2024 Assembly session by Bichhiya MLA Narayan Singh Patta. Under Question No. 4239, the legislator sought details of audit reports from 2019–20 to 2022–23 and clarification on a reported financial loss amounting to ₹7.59 crore in the Narmadapuram Municipal Council.

In a written reply tabled in the Assembly, Urban Administration Minister Kailash Vijayvargiya stated that no financial irregularities had been found and described the issue as a procedural lapse. However, subsequent verification by senior officials revealed that the audit reports submitted to the House themselves recorded significant discrepancies in revenue collection during the four-year period. The mismatch triggered concerns that the Assembly may have been provided incorrect or incomplete information.

Following the development, the department constituted a three-member inquiry committee at the state level, headquartered in Bhopal, to examine the alleged irregularities and the circumstances under which the Assembly reply was prepared. The committee has been tasked with determining whether the misleading information was supplied deliberately or due to administrative negligence.

As part of the probe, notices have been issued to seven officers and employees associated with the Municipal Council during the period under review. Those served notices include Prashant Jain, then superintendent and now CMO Mandideep; revenue sub-inspectors J.N. Chaurasia and Akbar Khan; computer operator Bhuvan Mehta; former CMOs Prabhat Kumar Singh, Madhuri Sharma and Navneet Pandey; and retired CMO Vinod Shukla. All have been directed to submit written explanations.

Preliminary estimates suggest a revenue loss of approximately ₹7 crore between 2019–20 and 2022–23, though officials said the exact figure would be established only after the inquiry report is finalised. Sources indicated that two officials linked to the period have since retired, but departmental action can still be initiated against them under applicable service rules.

The case has been escalated to the Commissioner of Urban Administration and the Joint Director concerned. Officials said accountability will be fixed once the inquiry concludes, underscoring that providing inaccurate information to the Assembly is viewed as a serious breach of administrative responsibility.