7 accused booked in ₹1.55 crore school payment scam:Fake account opened in Indore; fraud continued even after irregularity was detected

The Economic Offences Wing (EOW) has uncovered an alleged ₹1.55 crore fraud linked to mess payments at the Government Shramoday Residential School in Mugalia Chhap area of Bhopal. The investigation found that a fake firm was created using a name similar to the original company, and government funds were transferred into its bank account. According to EOW, the fraud was carried out by removing the words “Private Limited” from the name of the genuine company and creating a fake firm with a nearly identical identity. Officials said the money meant for mess operations was diverted to the fake account. Fake firm created using a similar name to the company’s In connection with the case, EOW has registered an FIR against fake firm operator Harsh Marjani, employee Kuldeep Shukla, Gaurav Sharma, former school principals Vijay Singh Mahobia, Santosh Singh Sisodia and Virendra Dubey, along with then accountant Leena Vishwakarma. The investigation revealed that in 2021, the contract for operating mess facilities in Shramoday schools was given to Kanaka Food Management Services Private Limited. Payments meant for the mess were shifted to a fake account Payments for the contract were supposed to be transferred to the company’s Bank of Baroda account in the Goa branch. EOW is now investigating how the payments were redirected to the fake firm and the role of the accused officials in the alleged fraud. According to EOW, Gaurav Sharma, who was a supervisor in the company, created a fake firm named ‘Kanaka Food Management Services’ in 2023. Fake bank account was opened in the Indore branch This firm was created in the name of Harsh Marjani, and an account was opened in AU Small Finance Bank, Indore. The investigation revealed that the name of the real company, ‘Kanka Food Management Services Private Limited’ was written in the files and notepads, but while issuing checks, the words ‘Private Limited’ were deliberately removed so that the amount would go into the account of the fake firm. According to EOW, the first payment of ₹21.95 lakh was made to the fake account on October 20-21, 2023. Accountant Leena Vishwakarma had allegedly not taken permission from the Joint Director to change the account details. New principal detected an irregularity in the payment process In February 2025, the new principal, Pradeep Rajawat, caught the irregularity. He himself added ‘Pvt. Ltd.’ to the check and ensured the payment went to the real company. This made the school management aware of the fraud. However, after Rajawat’s transfer, payments to the fake firm resumed. EOW books accused of corruption and fraud charges EOW has registered an FIR in the matter under sections related to fraud, criminal conspiracy and the Prevention of Corruption Act. Officials are continuing the investigation to identify the full extent of the alleged scam and the involvement of the accused officials. According to EOW, the first payment of Rs 21.95 lakh was made to the fake account on October 20-21, 2023 (Accountant Leena Vishwakarma had not even taken permission from the Joint Director to change the account). New Principal Caught the Irregularity, but then the payments resumed In February 2025, the new principal, Pradeep Rajawat, caught the irregularity. He himself added ‘Pvt. Ltd.’ to the check and ensured the payment went to the real company. This made the school management aware of the fraud. However, after Rajawat’s transfer, payments to the fake firm resumed. EOW has registered an FIR in the matter under sections of fraud, criminal conspiracy, and the Prevention of Corruption Act.