Lokayukta uncovers alleged black money network:Women and Child Development Joint Director raided after six-week covert investigation

The Madhya Pradesh Lokayukta has raided the residence and business premises of Laxmi Narayan Kandwal, Joint Director of the Women and Child Development Department, over allegations that he amassed a large amount of money in disproportionate assets through corruption linked to government schemes and departmental functions. During searches conducted on June 10, investigators discovered a modern two-storey gym and a supermarket allegedly linked to Kandwal. The Lokayukta claims that the officer possesses assets worth 241% more than his known sources of income. The action followed a secret investigation that lasted nearly six weeks. Senior position with significant administrative powers The post of Joint Director in the Women and Child Development Department is considered highly influential at the divisional level. The office oversees the implementation and monitoring of schemes related to women, children, adolescent girls and nutrition across all districts within the division. Responsibilities include: Investigating agencies allege that Kandwal misused these powers to accumulate illegal wealth. According to officials, Kandwal spent a significant portion of his service career in divisional-level postings, during which the alleged disproportionate assets were accumulated. Authorities are currently assessing the total value of the properties and will next examine the sources of income. Four alleged methods of corruption identified Lokayukta investigators have highlighted four major areas where irregularities are suspected. 1. Alleged irregularities in Nutrition and Food programs Investigators suspect manipulation of quality assessment reports related to food supplied at Anganwadi centres. Payments to self-help groups involved in food distribution require approval at the Joint Director level. Authorities allege that complaints regarding poor-quality food were ignored and that collusion may have taken place instead of corrective action. 2. Construction and Repair contracts under scrutiny The probe has also focused on construction, repair and rental-related work involving Anganwadi buildings. Investigators suspect that commissions were allegedly collected from contractors and payments were approved in exchange for financial benefits. 3. Alleged bribery in departmental inquiries The Joint Director’s office is responsible for handling departmental complaints and inquiries. The Lokayukta alleges that monetary transactions may have taken place in exchange for influencing investigations or providing relief in departmental cases. 4. Irregularities in hostels and one stop centres Investigators are examining decisions related to appointments and operations in hostels and One Stop Centres. The Lokayukta suspects that rules may not have been properly followed and that certain decisions were taken to serve personal interests. Secret investigation conducted for nearly two months The Lokayukta received a complaint nearly two months ago alleging that Kandwal had accumulated assets disproportionate to his income through misuse of official authority. Under the supervision of SP Rajesh Sahay, Inspector Ashutosh Mithas led a confidential investigation with a limited team. Officials gathered information from multiple government departments and, to avoid raising suspicion, also sought information relating to other officers as part of the inquiry process. Investigators subsequently examined documents connected to Kandwal’s family and properties before recommending action. Officers went undercover as gym customers During the probe, investigators learned that Kandwal allegedly operated a two-storey gym and a supermarket from a property linked to him. To assess the scale of investment and verify information without attracting attention, Lokayukta officials reportedly visited the gym posing as prospective customers. They inquired about memberships, facilities and equipment while secretly gathering information. The inquiry revealed that the gym was equipped with modern fitness machines, while the lower floor of the building housed a supermarket. According to preliminary estimates, the value of the gym equipment alone exceeds ₹40 lakh. Assets under valuation The Lokayukta is currently conducting a detailed valuation of the assets discovered during the raids. Once the assessment is completed, investigators will move to the next stage of the inquiry, which will focus on tracing the source of funds used to acquire the properties and businesses. The investigation remains ongoing.