Companies Under CBI Probe for Fake Bank Guarantees Continue Operating in Madhya Pradesh
The CBI is investigating Teerth Gopicon Company and MP Babariya & Sons for submitting fraudulent bank guarantees to secure tenders for Jal Jeevan Mission projects in Madhya Pradesh. Teerth Gopicon had submitted a guarantee worth Rs 184 crore, while Babariya & Sons provided one valued at Rs 128 crore. The probe was initiated following high court directions, with bank officers arrested in connection with the case.
The Jal Jeevan Mission initially accepted substitute original guarantees and allowed both companies to continue work on the same projects. However, after the fake guarantee scheme surfaced, the state government blacklisted both firms. Mission MD VKS Choudhary Kolsani stated the fraud caused losses worth crores. While Babariya & Sons accepted the directive to complete projects with authentic guarantees, Teerth Gopicon declined. Both companies remain barred from participating in new tenders.
