BHOPAL: As many as 392 officials and employees of urban local bodies (ULBs) across Madhya Pradesh face government action over alleged financial irregularities, with seven officials dismissed from service so far, a senior official said on Sunday. Those facing action include 135 chief municipal officers (CMOs).
Continuous artificial intelligence (AI)-based analysis of purchases made by ULBs has detected anomalies worth several crores of rupees, Additional Chief Secretary for Urban Development and Housing Sanjay Dubey said.
“While recovery proceedings have been initiated many of the officials and employees, salary increments of some others have been withheld. Some of the erring officials of the ULBs have also been demoted, while some others have been dismissed from service, after following the long process of dismissal,” Dubey said.
Dubey recently came into the spotlight after a video of him addressing ULB officials at a training programme in Bhopal in April 2026 went viral. In the video, he and other senior bureaucrats highlighted alleged irregularities in purchases made by civic bodies, giving the Opposition Congress an opportunity to attack the BJP government led by Chief Minister Mohan Yadav.
“At the time that training program was held (in April 2026), action had already been initiated against 146 officials, including the dismissal of services of seven officials. Recovery of around Rs 3 crore- Rs 4 crore had been done from the concerned staff and officials, who were found involved in the anomalies. Action was also initiated against more than 80 contractors and suppliers, who were found to be involved in irregularities in purchases/procurements by the ULBs. The process of identifying the wrong doers and acting against them is continuously going on, due to which till date action has been initiated against 392 officials and employees at various levels,” Dubey added.
The action is based on AI-based analysis of data from the MP e-Nagar Palika and Government e-Marketplace (GeM) portals. The analysis helped the department identify discrepancies in prices paid by different ULBs for the same items.
Examples highlighted at the April training programme included one ULB purchasing a garbage vehicle for Rs 2 lakh, while another paid Rs 6 lakh for the same vehicle, including four dustbins. A Nagar Parishad in the Bundelkhand region spent Rs 97 lakh on GI octagonal poles, prompting questions about whether sufficient space was available to install them.
A Nagar Parishad in western Madhya Pradesh purchased phenolic disinfectant, commonly known as phenyl, at Rs 5 per litre, while another ULB paid Rs 33,500. Similarly, one ULB bought a 60-watt LED bulb for Rs 306, while a civic body in Bhopal paid Rs 11,800 for the same item.
In the video, Dubey warned officials against assuming that their purchases would go unnoticed.
“You may think that you have purchased this or that and that nobody is finding out. Let me tell you that we know what you are buying, where you are buying it, in what quantities, and at what prices. Do not assume that we cannot see what you are doing. We do not always have enough time to take action against every individual, but we are taking action starting this year because I have already made this clear on several occasions. So, we are showing you how we operate and what we are examining. We can identify the irregularities taking place in every urban local body. You may choose not to disclose where your revenue comes from, but I know where you are spending your money, how you are spending it, and how much improper expenditure you are making,” he said.