MP Schools Scam: Rs 3.30 Crore Embezzled, Patrika Reveals Shocking Truth

MP News: Shocking case from Madhya Pradesh's Shramoday Schools, company manager becomes owner, and commits a major scam of ₹3.30 crore, shocking revelation by Patrika.

MP News: A discrepancy of ₹3.30 crore has been uncovered in the Shramoday schools currently operating in the capital Bhopal and Indore. This payment was made to a firm and its owners who did not even serve food to the children in these two schools. When the payment was not received in the account of the actual company serving food in these schools, the company's director and others investigated and discovered that the payment had been made to the account of a different firm with a similar name. Primarily, it has come to light that crores were paid fraudulently through the collusion of the principals of both schools and some officials from the DPI. Now, officials are avoiding registering an FIR against those involved in the fraud.

Company Manager Played a Game by Changing Names, Officials Supported Him

In Madhya Pradesh's Bhopal and Indore schools, Kanaka Food Management Service Private Limited was awarded the tender to serve food. The company's director, Jagdish Shetty, states that food was served in both schools from July 2024 to March 2025. Bills amounting to ₹3.30 crore were submitted, but no payment was received. They were told that government payments would be processed. When it wasn't, a complaint was lodged with the Labour Department on September 17, 2025. From there, letters were written to the Commissioner of School Education, Shilpa Gupta. An investigation revealed that the two principals and DPI officials had jointly made 9 payments to Kanaka Food Management Service, which are registered under the name Gaurav Sharma.

Principals Also Failed to Pay Attention

The principals of Bhopal and Indore are under scrutiny because the expenses incurred in the operation of these schools are paid with their signatures. Before making payments to Gaurav Sharma's firm's accounts, these principals should have obtained permission from the director of Kanaka Food Management Service Pvt. Ltd. Had they done so, the fraudulent payment could have been prevented.

According to information, these four Shramoday schools are located in the capital Bhopal, Indore, as well as Jabalpur and Gwalior. The Labour Department had handed them over to the School Education Department in 2022, but the Labour Department is still bearing the expenses. This is the reason why the expenditure on food is also borne by the Labour Department. This payment is made through the School Education Department. The Labour Department first provides the amount to School Education, after which the payment is made to the firm by the principal.

Was a Manager in the Company Earlier

Jagdish Shetty, the director of the original company, states that Gaurav Sharma was a manager in their original company. He then formed a firm with a name similar to their original company and received payments. This involved the collusion of principals and officials (mp news).

School Education Department is Responsible for Shramoday Schools

The responsibility for Shramoday schools has been transferred to the School Education Department, so the Labour Department does not make direct payments to anyone; payments are made through the School Education Department. A complaint regarding irregularities was received, and a letter has been written to the Commissioner of School Education for investigation, but a response is still awaited.

-Basant Kurre, Secretary, Labour Department