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Bhopal: In a major crackdown on corruption in Madhya Pradesh, the Directorate of Enforcement (ED) conducted search operations across seven locations on October 3 in Bhopal, Vidisha, Katni, and Chhatarpur districts. The raids targeted Shobhit Tripathi, former CEO of Janpad Panchayat Sironj, and his alleged associates in connection with a massive ₹30.18 crore embezzlement linked to the Marriage Assistance Scheme.

According to an official statement, the searches were carried out under the Prevention of Money Laundering Act (PMLA), 2002, leading to the seizure of incriminating documents, digital evidence, and the freezing of bank accounts and mutual funds worth ₹21.7 lakh.

ED action based on corruption probe

The ED’s action stems from an FIR filed by the Economic Offences Wing (EOW), Bhopal, under various provisions of the Indian Penal Code (IPC), 1860, and the Prevention of Corruption Act, 1988. The investigation revealed that Tripathi, along with data entry operators Yogendra Sharma and Hemant Sahu, misused the state-run Marriage Assistance Scheme between 2019 and November 2021.

The scheme was designed to support the families of registered construction workers by providing financial aid for marriage expenses. However, officials allege that Tripathi and his team fabricated beneficiary data and documents to siphon off crores of rupees.

Modus operandi of the scam

According to ED findings, the accused manipulated government databases, uploaded fraudulent records, and ensured that funds were transferred to ineligible or fictitious beneficiaries. Once the money was credited, it was withdrawn in small amounts via ATMs and redirected into accounts belonging to Tripathi, his family members, and entities linked to him.

To conceal the illicit origins of the embezzled funds, Tripathi reportedly engaged in layering—routing the money through multiple personal and business accounts to make it appear legitimate. Investigators said that the proceeds were subsequently invested in stock markets, mutual funds, and even used for purchasing immovable properties.

₹30 crore diverted through fake records

Preliminary findings suggest that ₹30.18 crore was diverted from the welfare scheme’s corpus through this elaborate network of fake records and shell beneficiaries. Officials believe that digital manipulation of the scheme’s portal enabled the smooth transfer of funds without triggering alerts within the administrative system.

The ED suspects that several lower-level officials and private operators may also be involved, and further scrutiny of the seized devices and documents is underway.

ED highlights governance loopholes

The ED’s statement emphasised that the case underscores the vulnerabilities in digital welfare disbursement systems. It said,

The agency further noted that swift enforcement actions reflect its continued efforts to combat corruption and financial crimes involving public officials and welfare schemes.

Political and administrative implications

The scandal has triggered political debate in Madhya Pradesh, with opposition leaders questioning the oversight and accountability mechanisms in state-run welfare schemes. Analysts say the case could have wider implications for similar programmes across India that rely heavily on digital beneficiary databases.

The state’s Rural Development Department is expected to launch an internal review of how the Marriage Assistance Scheme was managed during the period in question.

Further investigation underway

Officials confirmed that detailed forensic audits of bank accounts and transaction trails are ongoing. The ED is also collaborating with the Income Tax Department and State Vigilance bodies to trace the flow of funds.

The ED has not ruled out the possibility of attaching additional assets or initiating prosecution proceedings under the PMLA once the investigation is complete.