CBI nabs Indore firm’s MD in ₹183 Crore fake bank guarantee scam targeting MP irrigation projects
3 min read
K K Jha
Indore: In a major blow to financial fraud rackets plaguing India’s infrastructure sector, the Central Bureau of Investigation (CBI) has arrested Mahesh Kumbhani, Managing Director of Indore-based Teerth Gopicon Limited, and his associate Gaurav Dhakad for orchestrating a ₹183 crore fake bank guarantee scam. The arrests, made on Monday in Kolkata, expose a sophisticated scheme to secure lucrative irrigation contracts from Madhya Pradesh Jal Nigam Limited (MPJNL) through forged documents, causing significant financial loss and delays to critical public projects.
The duo is set to be produced before a special CBI court in Indore, following a high-profile investigation triggered by a complaint from MPJNL. The case, which has sent shockwaves through the state’s business and bureaucratic circles, highlights vulnerabilities in the tendering process for government contracts.
The CBI probe revealed that Teerth Gopicon Limited, a registered contractor with MPJNL, submitted eight fraudulent bank guarantees worth ₹183.21 crore to secure three irrigation projects valued at ₹974 crore in Chhatarpur, Sagar, and Dindori districts. These projects, awarded in 2023, aimed to bolster water supply and irrigation infrastructure in water-scarce regions of Madhya Pradesh.
The scam unraveled when MPJNL sought to verify the guarantees, allegedly issued by the Kolkata branch of Punjab National Bank (PNB). Fraudulent emails, mimicking PNB’s official domain, falsely confirmed the authenticity of the documents, prompting MPJNL to award the contracts and disburse approximately ₹85 crore in mobilization advances to Teerth Gopicon. The CBI’s investigation, initiated on May 9, 2025, following orders from the Jabalpur bench of the Madhya Pradesh High Court, exposed a Kolkata-based syndicate behind the forgeries, with links to similar frauds nationwide.
Investigation and Arrests
The CBI’s probe, intensified by raids across 23 locations in Delhi, West Bengal, Gujarat, Jharkhand, and Madhya Pradesh on June 19 and 20, led to the arrest of a senior PNB manager and another individual in Kolkata earlier this year. The agency’s latest operation culminated in the apprehension of Kumbhani and Dhakad, both Indore residents, who were taken into custody in Kolkata and brought to Indore on transit remand.
Incriminating documents, digital records, and financial trails recovered during searches point to a well-coordinated network exploiting gaps in the tendering process. The CBI is seeking an extension of custody to interrogate the accused further and uncover additional accomplices in what appears to be a sprawling financial conspiracy.
Teerth Gopicon has faced prior allegations of similar misconduct. In a separate case, the Ujjain Municipal Corporation filed an FIR against the company for using fake bank guarantees to secure a ₹29 crore water pipeline project under the Amrit scheme in 2023. Directors Chandrika Kumbhani and Pallav Kumbhani were also named in that complaint, signaling a recurring pattern of fraudulent practices.
The current case is part of a broader investigation into financial irregularities in Madhya Pradesh’s infrastructure projects, including the Jal Jeevan Mission, where fake guarantees worth ₹128 crore have been flagged in other contracts. The state government has responded by granting the CBI statewide jurisdiction to probe such scams, emphasizing zero tolerance for financial malfeasance.
The fraud has not only resulted in significant financial losses but also delayed critical irrigation projects, affecting farmers and communities in drought-prone areas. MPJNL has issued a show-cause notice to Teerth Gopicon and is pursuing recovery of the advanced funds. The CBI’s ongoing investigation aims to dismantle the fake bank guarantee racket, with expectations of further arrests as the probe deepens.
This high-profile case underscores the urgent need for enhanced verification mechanisms and stricter oversight in government procurement processes to safeguard public funds. As the CBI tightens its grip on the syndicate, the arrests of Kumbhani and Dhakad mark a critical step toward accountability in Madhya Pradesh’s infrastructure sector.
