The Economic Offences Wing (EOW) has intensified its action against long-pending corruption cases by filing a chargesheet in a cooperative housing loan fraud that has grown into a ₹104 crore liability and arresting a retired official in a disproportionate assets case in Chhattisgarh.
The 15,000-page chargesheet has been filed before a Special Prevention of Corruption Act Court in connection with a housing loan fraud involving the Adhunik Grih Nirman Cooperative Society, Raipur. The accused include Thawardas Madhwani, former chairman of the cooperative society, Basant Kumar Sahu, former housing supervisor of the Madhya Pradesh State Cooperative Housing Federation, and Pradeep Kumar Nikhra, who served as its manager. The FIR in the case was registered in 2000.
According to the EOW investigation, the accused allegedly conspired between 1995 and 1998 to fraudulently obtain housing loans under a government housing scheme by creating 186 fictitious beneficiaries. Loans of ₹1 lakh each were sanctioned, resulting in the fraudulent disbursal of ₹1.86 crore.
Investigators found that official records indicated houses had been constructed in Raipura and Pandri Kapa. However, physical verification reportedly revealed that neither the beneficiaries nor the houses existed at the recorded locations. The investigation further alleged that forged documents, fabricated utilisation certificates, and fake completion certificates were submitted to obtain loan approvals before the funds were diverted.
The EOW stated that with accumulated interest, the outstanding amount had increased to ₹104 crore as of December 31, 2025. The amount has now been classified as an unrecoverable bad debt of the State Cooperative Housing Federation.
In a separate development, the agency arrested Rajendra Singh Kshatriya (63), a retired seed manager of the Chhattisgarh State Seeds and Agricultural Development Corporation, in connection with a disproportionate assets case registered in 2020.
According to the EOW, Kshatriya earned approximately ₹6 crore through known and legitimate sources during the check period but allegedly incurred expenditure exceeding ₹11.28 crore. The agency has alleged that he possessed unexplained assets and expenditure worth ₹5.28 crore, representing nearly 88% more than his known income.
Following his arrest, Kshatriya was produced before a Special Court in Baikunthpur, which remanded him to judicial custody. He has since been lodged in the district jail.
