On 18th June 2025, the Enforcement Directorate (ED), Delhi Zonal Office conducted search operations at 37 locations across Delhi. These searches were part of an investigation under the Prevention of Money Laundering Act (PMLA), 2002. The case is related to what is being called the “Delhi Classroom Construction Scam.”
How the Scam Was Discovered
The ED began its investigation based on a complaint (FIR) filed by the Anti-Corruption Branch of the Delhi Government (GNCTD). The complaint named Manish Sisodia (former Education Minister), Satyendra Jain (former PWD Minister), and others. It alleged that more than ₹2,000 crore were misused in the construction of additional classrooms by the Public Works Department (PWD), GNCTD, between 2015 and 2023.
What Went Wrong in the Project
Initially, the plan was to build 2,405 classrooms. But the number was suddenly increased to 7,180 and later to 12,748 classrooms—without getting proper approvals or sanctions. This led to massive cost increases. The project also used high-cost materials suggested by a private firm, M/s Babbar & Babbar Associates. Many works were repeated or overbilled, and in some phases, the cost shot up by nearly 49% without proper reason.
Key Evidence Found During Searches
During the ED’s search, they found a large amount of suspicious and illegal items from the offices of private contractors. These included:
- Original files from the Delhi Government’s PWD Department
- Rubber stamps with names of PWD officials
- 322 bank passbooks connected to “mule accounts” — fake accounts in the names of labourers used to divert government funds
- Fake letterheads and documents used to create false records and inflated bills
Fake Companies and Bogus Payments
The ED also found that several “dummy” companies were involved in the scam. These companies had no real office or staff, but they were shown to receive large payments for construction work. In reality, these works were either not done or heavily overcharged. These fake firms also submitted false invoices to claim money from Delhi government departments.
What’s Next
The ED has collected a large amount of documentary and digital evidence. The investigation is still ongoing, and more actions may be taken based on what is discovered in the coming days.