RAIPUR, October 12: The Economic Offences Wing (EOW) and Anti-Corruption Bureau (ACB) have filed an approximately 20,000-page chargesheet against 10 accused before the Special Court under the Prevention of Corruption Act in Ambikapur in connection with a 2011 furniture procurement scam.

The investigation established a total financial loss of ₹67,48,008 to the state exchequer after uncovering violations of store purchase rules during furniture procurement and the release of payments before mandatory physical verification. Eight firms supplied furniture in quantities below the ordered specifications, while two firms received payments without supplying any furniture to schools.

The chargesheet includes headmasters’ acknowledgements, procurement and payment records, and documents relating to the alleged fake firm Darshan Fabrication. The accused face charges under Sections 13(1)(d) and 13(2) of the Prevention of Corruption Act, 1988, along with Sections 120-B, 409 and 420 of the Indian Penal Code (IPC).

₹2.70 crore allocated for school furniture

The case dates back to 2010-11, when ₹2.70 crore was allocated for purchasing furniture for middle schools in the undivided Surguja district under the Sarva Shiksha Mission. The District Office of the Rajiv Gandhi Shiksha Mission in Ambikapur issued purchase orders to 10 firms at Chhattisgarh State Industrial Development Corporation rates, with the approval of the then collector and district mission director.

On March 28, 2011, cheques totalling ₹2,68,18,838 were issued under joint signatures. The firms were required to complete the supply within 20 days.

Following media reports highlighting alleged irregularities, the School Education Department ordered an inquiry on April 20, 2013. A three-member committee constituted by the Surguja collector examined records between June 3 and June 12, 2013, and submitted its report on July 19 that year.

Payments released before physical verification

The inquiry found that despite the collector’s instructions to release cheques only after physical verification of the furniture, the then district project coordinator, S.P. Pandey, collected the cheques from accountant Praveen Sinha and distributed them between April 6 and April 9, 2011, before the furniture had been delivered.

The committee concluded that the action was intended to misuse official position, benefit the firms and misappropriate government funds.

Investigators also found that the firms failed to submit school-wise supply lists and signed acknowledgements from headmasters along with their bills. Mandatory procedures, including quality checks, physical verification by purchase committees and execution of formal agreements, were allegedly bypassed. The required 3% security deposit was also not collected.

Financial department guidelines cautioning against advance withdrawals to prevent budget lapses were reportedly ignored.

₹22.91 lakh paid to alleged fake firm

The investigation revealed that Pandey issued a purchase order dated February 18, 2011, in the name of Darshan Fabricators, Raipur, to Sanjay Patel, who operated Akriti Printing Press in Ambikapur, instead of the firm’s designated proprietor, Suresh Kataria.

Pandey allegedly instructed Patel to open a bank account in the name of Darshan Fabrication. Patel subsequently opened an account at Oriental Bank of Commerce in Ambikapur and deposited a cheque of ₹22,91,909 issued on March 28, 2011.

During interrogation, Patel reportedly stated that he had paid ₹7 lakh as commission to Pandey and was instructed to arrange furniture supplies using the remaining amount. However, no furniture was delivered to any school.

Another firm received ₹11.44 lakh without supply

Similarly, Premchand Jain, proprietor of Maharani Steel and Appliances, Raipur, received a cheque for ₹11,44,349 on March 28, 2011. Despite withdrawing the amount, his firm did not supply furniture to any school. Jain died on August 7, 2025.

The remaining eight firms supplied furniture in quantities below the ordered specifications, resulting in additional financial losses to the government.

According to the investigation, the amount involved in the alleged misappropriation was calculated as follows:

• ₹56,84,848 for furniture that was not supplied.
• ₹9,47,938 in value-added tax (VAT).
• ₹1,15,222 in inspection fees.

The total estimated loss to the state exchequer was ₹67,48,008.

Ten accused named in the chargesheet

The chargesheet names retired district project coordinator Satyaprakash Pandey and Sanjay Patel, operator of Darshan Fabrication, among the accused.

The other accused are Ajay Kumar Agarwal of Ambika Almirah and Steel Fabricators; Mamata Agarwal of Seleno Steel; Bidhi Singh Katlaria of Mahamaya Fabricators; Rajkumar Bansal of Surya Steel and Wooden Industries; Sandeep Tiwari of Shri Sai Industries; Hitesh Kumar Agarwal of Shyam Metal Products; Ritesh Kumar Agarwal of Shri Shyam Industries; and Sanjeev Gupta of Pankaj Furniture Mart.

According to the investigation, Pandey and Patel were issued multiple notices to record their statements but allegedly failed to cooperate.

Both were arrested on August 19, 2026, after being informed of the grounds for their arrest. They were subsequently produced before the Judicial Magistrate in Ambikapur.