ED Files Money Laundering Case Against Ex-UP Officials for MNREGA Fund Misuse
The Enforcement Directorate (ED) has taken strong action against two former Uttar Pradesh government officials accused of siphoning off MNREGA funds. Bhagwati Prashad Verma and Athar Parvez now face a prosecution complaint under the Prevention of Money Laundering Act (PMLA), 2002, as the agency cracks down on corruption in public welfare schemes.
ED’s Allahabad Sub-Zonal Office lodged the complaint on April 24 before the Special Court (PMLA) in Lucknow. The court took note of the case on September 9, moving the MNREGA scam investigation forward.
This probe stems from an FIR by the CBI’s Anti-Corruption Bureau in Lucknow. It charges the officials under the Indian Penal Code and Prevention of Corruption Act for abusing their positions and plotting a criminal conspiracy.
Between 2007 and 2010, the duo allegedly diverted MNREGA funds in seven UP districts: Balrampur, Gonda, Mahoba, Sonbhadra, Sant Kabir Nagar, Mirzapur, and Kushinagar. They teamed up with other officials and private suppliers to buy materials like job cards, complaint boxes, registers, generators, tents, first-aid kits, water tanks, signboards, and printing supplies—at wildly inflated prices.
The shady deals went through two firms: Sanyukt Samiti Panchayat Udyog in Chinhat, Lucknow, and Panchayat Udyog in Jhanjhari, Gonda. This caused huge losses to the government treasury, with the ED uncovering how the illegal gains were hidden and layered through complex transactions.
During the investigation, ED attached nine properties worth Rs 97.18 lakh on November 29, 2023. These include homes, farmland, and plots in Lakhimpur and Kanpur districts, all linked to the proceeds of the MNREGA fund misuse.
This prosecution complaint shows ED’s commitment to holding corrupt officials accountable and protecting funds meant for rural jobs and development under schemes like MNREGA. As the case unfolds in court, it highlights the ongoing battle against financial irregularities in India’s welfare programs.
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