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ED’s Shocking Find in Rs 2,000 Cr Delhi ‘Classroom Scam’: Over 300 Bogus Bank Accounts in Labourers’ Names

The investigation was initiated based on a First Information Report (FIR) registered by the Anti-Corruption Branch (ACB) of the Delhi government against former Deputy Chief Minister Manish Sisodia, former PWD Minister Satyendar Jain, and others.

Aam Aadmi Party (AAP) leader and former Delhi deputy chief minister Manish Sisodia arrives to appear before the Anti-Corruption Bureau in connection with classroom construction case, in New Delhi, Friday, June 20, 2025. (PTI Photo)

The Directorate of Enforcement (ED) has conducted search operations at 37 locations across Delhi on June 18 in connection with the alleged Rs 2,000-crore “Delhi Classroom Construction Scam”. The searches were carried out under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The investigation was initiated based on a First Information Report (FIR) registered by the Anti-Corruption Branch (ACB) of the Delhi government against former Deputy Chief Minister Manish Sisodia, former PWD Minister Satyendar Jain, and others. The case pertains to alleged financial misappropriation in the construction of over 12,748 additional classrooms between 2015 and 2023 by the Public Works Department (PWD) of the Delhi government.

According to the ED, while the initial sanctioned requirement was for 2,405 classrooms, the project scope was arbitrarily expanded first to 7,180 and then to 12,748 rooms without proper approvals. This led to significant cost escalations of up to 49.03% during the Priority-I and Priority-II phases.

The agency alleged unjustified adoption of richer specifications recommended by M/s Babbar & Babbar Associates, along with duplicate and inflated works.

During the raids, ED said it recovered incriminating evidence from private contractors, including original departmental files of the Delhi government and rubber stamps of PWD officials.
Authorities also found 322 bank passbooks linked to mule accounts opened in the names of labourers, which were allegedly used to divert public funds.
“Furthermore, forged letterheads of various private contractors and shell entities, which were used to generate fake procurement records and fictitious purchase bills, were found and seized. Evidences relating to fake invoices submitted to GNCTD departments, showing inflated or entirely bogus claims was found and seized,” the ED said in the statement.

“Several dummy firms have been found during the search which were having no real infrastructure, documentation, or operational legitimacy, but were shown to have received substantial payments for construction activities relating to the Additional Classrooms. Additionally, substantial incriminating documents and digital evidences have been recovered and seized during the search,” it added.

Sisodia Questioned for 3 Hours by ACB

Meanwhile, Manish Sisodia was questioned for over three hours by the ACB on Friday in connection with the same case. He appeared before the agency at 11 AM and left around 2:30 PM.
“Sisodia was examined in the presence of an independent ‘Panch’ witness, and his responses were recorded regarding various facts and circumstances related to the case,” said Madhur Verma, Joint Commissioner of Police, ACB. “Further investigation in the matter is underway.”
The FIR registered by the ACB on April 30 alleges irregularities in the construction of over 12,000 classrooms at inflated costs in Delhi government schools.
Ahead of his questioning, Sisodia called the case “politically motivated.”
“BJP is driven by political motives and is making fake allegations. We built excellent schools. The BJP government is poor in management of schools. There is waterlogging in Delhi and power cuts are happening. BJP is trying to divert attention from crucial issues. Even BJP workers do not know what the government is up to,” he told reporters.
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