ED raids premises in Rewa, Mauganj in Rs 37-crore fake bitumen bill case

Bhopal: The Enforcement Directorate (ED) on Friday carried out simultaneous searches in Rewa and Mauganj districts in connection with the alleged Rs 37-crore fake bitumen bill scam.The case was initially registered by the Economic Offences Wing (EOW), which alleged that contractors linked to Madhya Pradesh Road Development Corporation (MPRDC) projects used forged invoices to fraudulently claim payments for bitumen that was never purchased.Among the locations searched was a contractor-linked premises in Rewa’s Padmadhar Colony. ED teams examined financial records, property documents, bank transaction details and other records during the searches. Similar action was carried out at premises linked to the investigation in Mauganj district.Sources said the searches were conducted under the Prevention of Money Laundering Act (PMLA) to trace the alleged proceeds of crime and gather evidence related to suspected money laundering.According to the EOW, contractors associated with road construction projects submitted fake invoices purportedly issued by oil companies, including Indian Oil Corporation, Hindustan Petroleum Corporation Ltd, Bharat Petroleum Corporation Ltd, Essar and Nayara Energy, to claim reimbursement for bitumen used in road works.The EOW alleged that fake bills worth around Rs 37 crore were submitted across multiple MPRDC projects.

Verification carried out during the investigation reportedly found that the invoices were not issued by the companies concerned, indicating that the bitumen shown in the bills had never been procured. The alleged fraud raised concerns over the quality of road construction.The ED is now examining financial transactions, assets and fund flows linked to the case to determine whether proceeds generated through the alleged fraud were diverted or laundered through other channels. Searches and scrutiny of documents were continuing at the time of filing this report.