IN THE HIGH COURT OF MADHYA PRADESH AT GWALIOR BEFORE HON'BLE SHRI JUSTICE MILIND RAMESH PHADKE ON THE 22^nd OF JANUARY, 2026 MISC. CRIMINAL CASE No. 26304 of 2023 MUNNIRAJA BUNDELA AND OTHERS Versus THE STATE OF MADHYA PRADESH AND OTHERS Appearance:

Shri Divakar Vyas - Advocate for petitioners.

Ms Kalpana Parmar - Public Prosecutor for respondent No.1/State.

Shri Nakul Khedkar - Advocate for respondent No.2.

ORDER This petition under Section 482 of Cr.P.C. has been filed by the petitioners seeking quashment of FIR bearing crime No.322/2023 registered at Police Station Chanderi District Ashoknagar for offence punishable under Sections 420, 409 and 120B of IPC as well as charge-sheet and all consequential proceedings arising therefrom.

2. As per prosecution case, the complainant, Gorishankar Rajput, son of Roshanlal Rajput, aged 30 years, Chief Executive Officer, along with Narayan Singh Kalawat, Assistant Accountant, appeared at Police Station Chanderi on 30.05.2023 and submitted a written complaint No. 720/Accounts/2023, along with an inquiry report, alleging that Smt. Munniraja, former Sarpanch of Gram Panchayat Khagaldudrai, and Shri Pratap Singh Kushwaha, the then Secretary (currently suspended), misappropriated government funds sanctioned for development works including construction of a community building, Nal-Jal water supply scheme, Anganwadi buildings, and CC road works.

3. The inquiry conducted by the Rural Engineering Service and District Panchayat, Ashoknagar revealed that substantial amounts were withdrawn against sanctioned works which were either incomplete or not commenced, indicating deliberate financial embezzlement and conspiracy. Although partial amounts were later deposited following proceedings under Section 92 of M.P. Panchayat Raj and Gram Swaraj Adhiniyam, 1993, the total misappropriated amount was found to be Rs.14,36,562/-, withdrawn with dishonest intent. Based on prima facie evidence, offences under Sections 420, 409, and 120-B of the Indian Penal Code are made out; therefore, the case has been registered and taken up for investigation, as per the directions of the Collector, Ashoknagar, supported by official orders, measurement books, portal records, and audit reports issued between 2015 and 2023.

4. Learned counsel for the petitioners respectfully submits that petitioner No.1 was the duly elected Sarpanch of Gram Panchayat Khagaldudrai, Janpad Panchayat Chanderi, District Ashoknagar, and discharged her duties for the tenure from the year 2016 to 2021. Petitioner No.2 has been serving as the Panchayat Secretary of Gram Panchayat Khagaldudrai, Janpad Panchayat Chanderi, District Ashoknagar, Madhya Pradesh, for more than ten years. The allegation levelled against the present petitioners pertains to alleged embezzlement of government funds, pursuant to which proceedings under Section 92 of the M.P. Panchayat Raj and Gram Swaraj Adhiniyam, 1993 were initiated. It is submitted that the said allegations are wholly misconceived and unsupported by material evidence.

5. It is further submitted that the complainant himself conducted verification of the payments made during the tenure of the petitioners and submitted a detailed report before the Chief Executive Officer, Zila Panchayat, Ashoknagar. As per the said report, all relevant documents were duly examined and calculations were carried out on the basis of the Measurement Book and other official records. The report specifically took into consideration the amount deposited towards recovery by Smt. Munni Raja Bundela, former Sarpanch of Gram Panchayat Khagaldudrai, as well as the amount eligible for adjustment as per the valuation documents submitted. Accordingly, Smt. Munni Raja Bundela deposited an amount of Rs.9,11,000/- in cash, submitted a Work Completion Certificate amounting to Rs.2,00,000/-, and furnished valuation documents for the remaining amount of Rs.3,81,562/-. Thus, the total recoverable amount of Rs.14,92,562/- stands fully adjusted, leaving no o