Two contractors wanted in connection with an alleged liquor contracts 'scam' running into Rs 41.40 crore were arrested today, the police said.
Police seized cash worth Rs 46.50 lakh from one of the arrested accused.
The state exchequer had incurred a loss of Rs 41.40 crore as some liquor contractors forged the challans, through which the contract amount was deposited in the banks.
"On a tip off, liquor contractors Yogendra Jaiswal and Avinash Mandloi were arrested from different places. Jaiswal was arrested from the Baroli Toll Tax barrier when he was headed towards Ujjain in his car and cash worth Rs 46.50 lakh was recovered from him.
"Mandloi was arrested from his residence in Vidya Nagar area of the city," DIG Hari Narayan Chari Mishra told reporters here.
He said the police are looking for other absconding accused in connection with the scam.
Ten liquor contractors, including Jaiswal and Mandloi, and their six associates were booked after it came to light that the state exchequer had suffered a loss of Rs 41.40 crore due to forged documents submitted by the accused.
"During the last two years, the accused contractors deposited amounts lesser than what they were supposed to pay (for securing liquor contracts). They forged the challans and informed the Excise Department that they have deposited the actual contract amount," an investigating official said.
They made the changes in the challans after depositing the lesser amount in various banks and this organised fraud resulted into the loss to the tune of Rs 41.40-crore to the government exchequer, he explained.
After the irregularities came to light, the Madhya Pradesh government suspended six Excise department officials earlier this month.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)