The Economic Offences Wing (EOW) has filed a chargesheet against eight former government officials, including a former Chief Executive Officer (CEO) of a district panchayat, in connection with an alleged ₹1.69 crore MGNREGA procurement scam dating back nearly 18 years in Chhattisgarh.

The nearly 6,000-page chargesheet was submitted before the Special Court under the Prevention of Corruption Act in Kanker after the EOW concluded its investigation into alleged financial irregularities committed during the implementation of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in 2006-07 and 2007-08.

According to the investigation, the alleged scam involved irregular procurement of materials worth ₹1,69,14,247 for eight gram panchayats. The probe found that procurement norms were allegedly bypassed, resulting in financial losses to the government.

District-Level Procurement Under Scanner

Investigators alleged that then District Panchayat CEO K.P. Devangan authorised centralized procurement of materials at the district level despite rules assigning purchasing powers to the respective Janpad Panchayats and Gram Panchayats.

The EOW stated that various items, including flex boards, muster roll verification sheets, employment guarantee registers, file covers, labour information records and operational guidelines related to the employment scheme, were purchased without following prescribed procurement procedures.

Officials claimed the purchases were made in violation of government rules governing tendering and decentralized procurement under the rural employment programme.

Eight Former Officials Named

Apart from former District Panchayat CEO K.P. Devangan, the chargesheet names seven former Janpad Panchayat CEOs as accused. They include Radhakant Kar (Kanker), Govardhan Gajballa (Narharpur), Pardeshi Ram Markam (Charama), Bharat Ram Netam (Antagarh), Ramkishun Dhruv (Koylibeda), G.R. Thakur (Bhanupratappur) and Sanwaldas Baghel (Durgkondal).

The EOW alleged that the accused acted in collusion to bypass tender procedures and procurement regulations while misusing their official positions for unauthorized expenditure of government funds.

Officials said documentary evidence collected during the investigation supported allegations of procedural violations and financial irregularities.

Charges Under IPC and Anti-Corruption Law

The accused have been booked under Sections 120-B (criminal conspiracy), 409 (criminal breach of trust by a public servant) and 420 (cheating) of the Indian Penal Code, along with provisions of the Prevention of Corruption Act, 1988, including Sections 13(1)(C), 13(1)(D) and 13(2).

The prosecution will now proceed before the Special Court in Kanker, which will examine the evidence and determine the next stage of judicial proceedings.

Previous Cases Against Main Accused

The EOW also revealed that former District Panchayat CEO K.P. Devangan is already facing two separate corruption-related cases.

In one case registered in 2009, he has been accused of manipulating the recruitment process through forged documents to benefit ineligible candidates. Another case registered in 2010 alleges violations of procurement rules and misuse of official authority involving alleged irregularities exceeding ₹8.44 crore.

According to the agency, chargesheets in both of those cases have already been filed before the competent court.

The latest prosecution marks a significant development in one of Chhattisgarh's oldest alleged MGNREGA corruption cases. Authorities maintain that the investigation was based on documentary evidence and procedural records collected during the probe, while the guilt or innocence of the accused will ultimately be decided during trial.

 The Economic Offences Wing (EOW), Rewa, has registered a criminal case against five individuals for allegedly obtaining a ₹31.50 lakh bank loan using forged documents and fabricated project reports under the Prime Minister Formalisation of Micro Food Processing Enterprises (PMFME) Scheme. Investigators claim the accused secured the loan by proposing an ice cream manufacturing unit that was never established.

The case relates to the alleged misuse of a government subsidy scheme intended to promote micro food processing industries.

Loan Secured Using Allegedly Fake Documents

According to the EOW, the complaint was received at its Bhopal headquarters regarding a loan sanctioned by the Punjab National Bank's Venkat Road branch in Rewa to Kalpana Gupta, proprietor of Kalpana Udyog, and her husband Sandeep Gupta.

During verification, investigators found that the accused allegedly conspired with consultants to prepare a false project report and submitted forged documents to obtain loan approval. The documents were reportedly verified before the bank sanctioned the loan amount of ₹31.50 lakh.

Factory Never Established, Says Probe

The investigation further revealed that the proposed ice cream manufacturing unit, for which the loan was sanctioned, was never set up at the declared location.

Officials alleged that instead of establishing the factory, the loan amount was diverted for purposes other than those specified in the project proposal, resulting in the alleged misuse of government subsidy benefits available under the PMFME scheme.

The findings prompted the EOW to initiate criminal proceedings against those allegedly involved in the fraud.

Five Named in Criminal Case

Based on the preliminary investigation, the EOW has registered a case against:

• Kalpana Gupta, Proprietor, Kalpana Udyog

• Sandeep Gupta

• Rupesh Kumar Singh, Proprietor, Spandansh Electric and Machinery

• Santosh Kumar Verma, Proprietor, Arvindo Tech Infra

• Ankita Singh, Proprietor, Arvindo Tech Infra

Officials said the investigation is also examining the role of other individuals connected to the preparation, verification and submission of the project documents.

Case Registered Under BNS

The accused have been booked under Sections 318(4) and 61(2) of the Bharatiya Nyaya Sanhita (BNS), 2023. The EOW has launched a detailed investigation to determine the extent of the alleged conspiracy and whether additional persons or entities were involved.

Authorities are also examining financial records and project-related documents to trace the utilisation of the loan amount and identify any further irregularities.

The PMFME scheme was launched by the Union Government to strengthen micro food processing enterprises through financial assistance, credit support and subsidies. Officials said any misuse of the scheme undermines its objective of supporting genuine entrepreneurs.

The Economic Offences Wing (EOW) has made serious allegations against former Chhattisgarh Congress treasurer Ramgopal Agrawal in the state's alleged coal levy scam, claiming that nearly ₹800 crore was collected in the name of party funds and routed through a hawala network.

According to the investigating agency, Agrawal played a central role in managing the alleged fund, which was reportedly brought to the Congress headquarters in Raipur before being sent to Delhi through illegal financial channels.

The allegations were presented before a special court after Agrawal was produced following his arrest in the high-profile case.

EOW Details Alleged Money Trail

In documents submitted before the court, the EOW claimed that cash generated through the alleged coal levy scam was transported to the Congress office in bags and cartons.

The agency alleged that Agrawal supervised the receipt, accounting and management of the funds before they were transferred through hawala operators.

Investigators further claimed that ₹52.62 crore from the alleged coal levy proceeds directly reached Agrawal, who was responsible for receiving and handling the money.

These allegations are part of the agency's investigation and are yet to be tested in court.

Witness Statements Cited

The EOW has relied on statements from several witnesses during the investigation.

According to the agency, Devendra Dadsena, an accountant associated with the Congress and Agrawal's personal assistant, told investigators that money linked to the alleged coal levy scam was brought to the Congress office, where it came under Agrawal's control.

The agency also cited statements from businessman Laxminarayan Bansal, alias Pappu, who allegedly claimed that nearly ₹800 crore was routed to the Congress office through businessman Dipen Chawda.

Another witness, Nikhil Chandrakar, reportedly told investigators that proceeds from the alleged coal levy reached Agrawal.

The statements form part of the ongoing investigation and have not yet been judicially examined.

EOW Tracks Movements Across Eight States

The agency also claimed that after leaving Raipur, Agrawal stayed in eight states, including Odisha, Uttar Pradesh, Telangana, Karnataka, Kerala, Rajasthan, Madhya Pradesh and Delhi.

During this period, investigators said he visited religious places such as Puri, Varanasi and Prayagraj, where he reportedly performed special prayers.

Despite being away from Chhattisgarh, the EOW alleged that he remained in contact with family members, political leaders and businessmen.

Case Originated After Income Tax Searches

According to the EOW, the investigation traces its origin to Income Tax raids conducted on June 30, 2022, at premises linked to alleged coal businessman Suryakant Tiwari and his associates.

Investigators claimed diaries and documents recovered during those searches revealed details of alleged illegal coal levy transactions, in which Agrawal's name also surfaced.

Based on findings shared by the Enforcement Directorate (ED), the EOW subsequently registered an FIR and launched its investigation.

After remaining unavailable to investigators for nearly three years, Agrawal surrendered before authorities on July 8, 2026, and was produced before the special court the following day.

Remand Till July 17

The EOW sought a 14-day custodial remand for further interrogation. However, the special court granted nine days of remand, directing that Agrawal be produced again on July 17.

Officials indicated that his questioning could also lead to further action in other alleged cases linked to custom milling, District Mineral Foundation (DMF) funds and the liquor scam. The Enforcement Directorate is also expected to pursue parallel proceedings.

The investigation remains ongoing, and no court has yet determined the validity of the allegations made by the EOW.

A Raipur court on Thursday remanded former Chhattisgarh Pradesh Congress Committee treasurer Ramgopal Agrawal to the custody of the Economic Offences Wing (EOW) until July 17, a day after he surrendered in connection with multiple alleged financial scam investigations, including the liquor, coal levy and custom milling cases.

Agrawal, who had remained out of the public eye for nearly three years, appeared before the EOW office in Raipur on Wednesday. Following a medical examination, investigators produced him before the court, seeking custodial interrogation as part of the ongoing probe into alleged financial irregularities.

While the EOW sought a 14-day custodial remand, the court granted nine days, allowing investigators to question him until July 17.

Congress Announces Statewide Protest

The development has triggered a political confrontation in the state, with the Congress accusing the BJP government of misusing investigative agencies for political purposes.

The party has announced a statewide protest on Friday against Agrawal's arrest and the investigation.

Former Chief Minister Bhupesh Baghel's son Chaitanya Baghel, who is also an accused in the case, was present at the court premises. However, he declined to comment on the proceedings, stating that he could not speak publicly because he was himself facing charges in the matter.

Agrawal also refused to comment when approached by reporters after the court proceedings.

EOW Examining Money Trail

The investigation centres on allegations that funds generated through the alleged liquor, coal levy and custom milling scams were routed to the Rajiv Bhavan, the state Congress headquarters.

According to the EOW, diaries allegedly recovered during the investigation into the coal levy case contain entries indicating financial transactions linked to the Congress office.

Investigators allege that Agrawal played a role in facilitating the movement of these funds. The agency is attempting to establish the source of the money, those involved in transferring it, its intended recipients and the manner in which it was allegedly utilised.

The EOW has also questioned Agrawal's son, Vaibhav Agrawal, over two days regarding the family's financial transactions, business dealings and Ramgopal Agrawal's whereabouts during the past three years.

Multiple Scam Investigations

The agency claims that Agrawal's name has surfaced during investigations into three separate cases involving alleged financial irregularities.

According to investigators, the alleged liquor scam involved illegal commissions and irregularities in the state's liquor distribution system between 2019 and 2022. Agencies have estimated the alleged scam at around ₹3,200 crore, though the allegations are yet to be judicially established.

In the coal levy case, the EOW and Enforcement Directorate (ED) allege that illegal collections were made from coal transporters and mining businesses between 2020 and 2022, with investigators estimating the alleged proceeds at around ₹540 crore.

The third case relates to the custom milling incentive scheme, where investigators allege that irregularities in incentive payments to rice millers between 2015 and 2023 caused losses to the state exchequer. The EOW has estimated the alleged irregularities at around ₹127 crore.

Financial Records Under Scrutiny

Investigators said Agrawal's custodial interrogation will focus on his alleged role in financial transactions, contacts with other accused persons and the movement of funds identified during the investigation.

The EOW said questioning will be based on seized documents, digital evidence, financial records and other materials collected during the course of the probe.

Officials are also examining the alleged network of intermediaries, beneficiaries and financial channels connected with the cases.

Investigation Continues

The investigations into the liquor, coal levy and custom milling cases have led to action against several bureaucrats, businessmen and political figures over the past few years.

While investigative agencies have made multiple allegations regarding the flow of funds and alleged corruption, the charges have not yet been judicially proven, and the cases remain under investigation and before the courts.

The outcome of Agrawal's custodial interrogation is expected to play an important role in determining the next phase of the investigation.

The Delhi High Court has set aside the Economic Offences Wing FIR and the Enforcement Directorate's money laundering investigation against NewsClick and its founder-editor Prabir Purkayastha, holding that the case lacked the ingredients of fraud or criminal breach of trust.

Court Grants Relief to NewsClick

The Delhi High Court has quashed the FIR filed by the Economic Offences Wing (EOW) and the Enforcement Directorate's (ED) money laundering investigation in the foreign funding case involving NewsClick and its founder-editor Prabir Purkayastha.

Justice Neena Bansal Krishna, in her order, observed that the agencies had carried out extensive investigations without producing concrete evidence of fraud. The court said that even if the allegations in the FIR were accepted at face value, they did not establish offences such as cheating or criminal breach of trust.

Why the court intervened

The High Court said the EOW FIR and the ED's money laundering case did not disclose the essential ingredients of fraud or breach of trust, and that continuing the proceedings would amount to a misuse of the legal process.

The judgment described the continuation of the proceedings as a misuse of the legal process and noted that fraud requires a deceived party, which was absent in the present case.

Origin of the Foreign Funding Case

The case originated from an FIR registered by the Delhi Police in August 2020. Investigators alleged that NewsClick received foreign direct investment (FDI) worth ₹9.59 crore from an American company, Worldwide Media Holdings LLC.

Authorities questioned the valuation of shares, claiming that shares with a face value of ₹10 were issued at a premium of ₹11,510 per share despite the company not being profitable. Investigators alleged that the structure was designed to bypass the 26% FDI cap applicable to Indian media organisations.

Following the FIR, the ED conducted searches at the offices of NewsClick, as well as at premises linked to directors and shareholders under the Prevention of Money Laundering Act (PMLA). Officials seized foreign currency, documents and digital devices during the raids.

The ED later stated that NewsClick had received ₹38.05 crore in foreign funds over three years, including ₹9.59 crore through FDI and ₹28.46 crore classified as export of services revenue.

Parallel Investigations and UAPA Case

The controversy widened in 2023 after BJP MP Nishikant Dubey referred to a New York Times report in Parliament and alleged that some journalists were involved in spreading Chinese propaganda. Union Minister Anurag Thakur also publicly alleged links between businessman Neville Roy Singham and entities associated with NewsClick.

On August 17, 2023, the Delhi Police Special Cell registered a separate case against NewsClick under the Unlawful Activities (Prevention) Act (UAPA) and sections of the Indian Penal Code relating to promoting enmity and criminal conspiracy.

Purkayastha was arrested on October 3, 2023, in connection with that case. The Special Cell questioned 46 individuals and conducted searches at 31 locations linked to NewsClick and journalists associated with the platform. An 8,000-page chargesheet was filed in March 2024.

Multiple Agencies Involved

NewsClick is operated by PPK NewsClick Studio Private Limited and was founded by Purkayastha in 2009.

Over the course of the investigation, multiple agencies became involved, including the Delhi Police Special Cell, the EOW, the Income Tax Department, the ED and the CBI, each examining different aspects of the allegations related to foreign funding and compliance.

Implications of the High Court Order

The Delhi High Court's decision effectively ends the EOW FIR and the ED's related money laundering proceedings against NewsClick and Purkayastha. The court's observations on arbitrary action and the absence of evidence of fraud are likely to be closely examined in future disputes involving financial investigations and media organisations.

The order does not automatically dispose of other proceedings, including the separate UAPA case being pursued by the Delhi Police Special Cell.

ACB files supplementary chargesheet in ₹550 crore CGMSC medical scam

Anti-Corruption Bureau names four more individuals in the ongoing investigation into inflated medical equipment rates and tender rigging in Chhattisgarh.

RAIPUR: The Chhattisgarh Anti-Corruption Bureau (ACB) on Friday intensified its crackdown on the multi-crore Chhattisgarh Medical Services Corporation (CGMSC) scam by filing a supplementary chargesheet against four key individuals. The investigation into the alleged ₹550 crore fraud involves high-level corruption in the procurement of medical reagents and equipment under the state’s ‘Hamar Lab’ scheme.

The chargesheet names Abhishek Kaushal, Director of Recorders & Medicare Systems; Rakesh Jain, Proprietor of Shri Sharda Industries; liaison agent Prince Jain; and Kunjal Sharma, Marketing Head of Diasys India. This development takes the total number of accused against whom chargesheets have been filed to ten.

Cartelization of medical tenders

Investigations conducted by the ACB reveal that three major firms—Mokshit Corporation, Recorders & Medicare Systems, and Shri Sharda Industries—formed a sophisticated syndicate to manipulate the tendering process. By submitting matching product specifications and rates in a coordinated pattern, these companies effectively stifled competition.

Official sources indicated that the firms submitted forged documents to meet eligibility criteria. The syndicate ensured that Mokshit Corporation remained the lowest bidder while other participating firms provided cover bids to validate the process artificially.

Inflated rates bleed exchequer

A significant portion of the ₹550 crore loss to the state exchequer is attributed to the deliberate inflation of Maximum Retail Prices (MRP). Kunjal Sharma of Diasys India is accused of conspiring to submit reagent and consumable prices that were several times higher than the actual market rates.

According to officials, these inflated price lists were approved by CGMSC authorities without proper vetting. This allowed the firms to secure contracts at exorbitant rates, leading to massive financial irregularities in the procurement of essential medical kits.

Massive orders within weeks

The Enforcement Directorate (ED) and Economic Offences Wing (EOW) have previously noted the suspicious speed of these transactions. Documents suggest that CGMSC officials issued orders worth approximately ₹750 crore to Mokshit Corporation within a span of just 27 days.

Notably, these procurements were pushed through despite a lack of immediate demand for the medical equipment. Sources suggested that the specifications in the tender documents were tailored specifically to favor the chosen firms, ensuring that other eligible suppliers were disqualified.

Background of the probe

The massive scam came to light in December 2024, following a formal complaint by former Home Minister Nankiram Kanwar. Kanwar had approached the Prime Minister’s Office and central agencies, including the CBI and ED, alleging systematic looting of public funds within the CGMSC.

Acting on these complaints, the Union Government directed the EOW to initiate a probe. This led to the registration of a First Information Report (FIR) against five individuals, which has since expanded into a wider investigation involving several bureaucrats and businessmen.

Mastermind in federal custody

The investigation gained significant momentum following the arrest of Shashank Chopra, the promoter of Mokshit Corporation, who is considered the mastermind behind the operation. During his interrogation by the ED, Chopra reportedly named several business associates and officials who provided him with administrative protection.

The officials currently under scrutiny include Dr. Anil Parsai, Deepak Kumar Bandhe, Basant Kumar Kaushik, Kamalkant Patanwar, and Khirod Rautia. These individuals are alleged to have facilitated the scam by bypassing standard procurement protocols.

Impact on healthcare sector

The scam has sparked a massive political row in Chhattisgarh, raising concerns over the integrity of public healthcare procurement. While the ‘Hamar Lab’ scheme was intended to provide affordable diagnostic services to the public, the siphoning of funds has severely impacted the scheme's credibility.

Health sector experts suggest that the ₹550 crore loss represents a missed opportunity to upgrade state-run medical facilities. Public interest groups have called for a complete audit of all medical contracts signed during the period in question.

Future course of action

The ACB has confirmed that the investigation into the CGMSC scam remains open. Further supplementary chargesheets are expected as agencies verify the trail of the misappropriated funds and the involvement of other shell companies used for money laundering.