₹6.4 cr ‘bardana’ scam exposed in MP cooperatives:Fraud ran across two governments over 8 years; 143 societies administrators under probe

A major scam worth over Rs 6 crore has been uncovered in Gwalior’s cooperative institutions. Officials and employees of the District Cooperative Central Bank (DCCB) and several Primary Agricultural Credit Cooperative Societies (PACS) are accused of selling government-issued gunny and plastic bags meant for the poor’s rations and farmers’ crops. The fraud went on for seven years, from 2016 to 2023, during both the BJP and Congress governments. A high-level inquiry has now been launched after years of neglect by local officials. How the Rs 6-crore scam worked The Cooperative Department’s initial probe found that the fraud happened at three different levels across 143 societies. 1. Selling PDS gunny bags – Rs 2.62 cr misused Around 72 employees and 10 administrators from 72 societies sold gunny bags returned from Public Distribution System (PDS) shops.They pocketed the Rs 2.62 crore received from the sales instead of depositing it into society accounts. The scam was carried out through direct collusion between salesmen and society managers. 2. Bags not returned to civil supplies corporation – Rs 2.89 cr lost 44 cooperative societies never returned bags supplied by the Civil Supplies Corporation.Instead, they sold them in the open market over five years, making Rs 2.89 crore.They kept the records confusing to mislead authorities. 3. Crop procurement bags misused – Rs 89.39 lakh pocketed 27 cooperative societies also misappropriated bags meant for crop procurement from Markfed and other government agencies.They sold bags worth Rs 89.39 lakh that were supposed to be used for storing wheat, paddy, and mustard. Complaints ignored for years Locals had been complaining about this scam to the Collector and the Cooperative Department for years.However, officials took no action. Even the Apex Bank, which oversees cooperative banks, ignored the issue. The matter gained attention only after Chief Minister Mohan Yadav gave Additional Chief Secretary (ACS) Ashok Barnwal the charge of the Cooperative Department in March 2025.During his visit to Gwalior, Barnwal met former minister and ex-chairman of Gwalior Cooperative Bank, Bhagwan Singh Yadav, who presented written evidence of the scam. Chief Secretary’s intervention boosts inquiry After slow progress despite some suspensions, the complaint reached Chief Secretary Anurag Jain.Recognising its seriousness, Jain directed prompt action.In May 2025, ACS Ashok Barnwal included the case in the government’s time-limit (TL) list, ensuring investigation within a fixed timeframe.Since then, a 12-member team has been examining records intensively. Major hurdles in the investigation Investigators are facing several serious challenges that are delaying progress. Records missing Many societies’ records from 2016 to 2023—including stock registers, ledgers, and cash books—have been removed or tampered with. Death of accused Some administrators and managers involved in the scam have died, making recovery and legal accountability difficult. Incomplete departmental data The Food Supply Corporation has provided records for only three of the seven years requested.Even this partial data revealed that bags worth Rs 40.50 lakh were not returned in just two years.Officials say the total figure could multiply once full records are obtained. Officials and complainant speak Joint Registrar, Gwalior, Bhupendra Singh, said,“On the government’s instructions, we began an investigation three months ago. A 12-member inspector-level team is working on it. We’ve sought complete records from FCI, Markfed, and the Food Supply Corporation. Once received, responsibility will be fixed and legal action taken.” Complainant Bhagwan Singh Yadav added,“This scam is not limited to Gwalior. Similar irregularities exist in Shivpuri and Dhar districts too. Gunny bags have not been returned in several other societies as well.” What lies ahead The inquiry team continues to piece together missing records and trace those responsible.Authorities believe the total loss to the government may exceed Rs 6 crore once all data is verified.For now, the case has reopened a wider debate on corruption in Madhya Pradesh’s cooperative system — a sector meant to serve farmers and the poor but long plagued by misuse and neglect.