CBI Busts Rs. 183 Crore Fake Bank Guarantee Scam: Indore Firm’s MD Arrested in Multi-Crore Irrigation Fraud
In a recent Fake Bank Guarantee Scam worth Rs. 183 Crore, the Central Bureau of Investigation (CBI) has arrested the Managing Director of an Indore-based private company and a private person.
Three distinct cases have been registered under the CBI after the directions from the Hon’ble High Court of Madhya Pradesh. These cases are all associated with a key financial fraud, in which forged bank guarantees were submitted by an Indore-based company named the Madhya Pradesh Jal Nigam Limited (MPJNL).
In 2023, the company reportedly got three irrigation projects in the districts of Chhatarpur, Sagar, and Dindori in Madhya Pradesh, worth a total of Rs. 974 crore. To get these projects, the company gave eight fake bank guarantees worth Rs. 183.21 crore. Using these fake guarantees, it also managed to take around Rs. 85 crore in advance payments from MPJNL.
At the start of the investigation process, MPJNL got fake email replies that looked like they came from Punjab National Bank’s (PNB) official domain. These emails deceptively confirmed that the bank guarantees were real. Believing these false emails, MPJNL gave three contracts worth Rs. 974 crore to a private company based in Indore.
The arrested Managing Director will be served before the Special Magistrate, Indore Court.
