BMTC parts procurement scam exposes Rs 25 crore fraud
August 27, 2026
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Home Bharat

Karnataka: BMTC parts procurement scam exposes Rs 25 crore fraud, 8 officials suspended

BMTC is facing an alleged Rs 20–25 crore procurement scam involving inflated purchases, fake invoices, forged stock entries and payments for undelivered bus spare parts. Eight officials and employees have been suspended, while a three-member committee probes suspected collusion with private suppliers and examines records for possible fraud spanning several years

IndreshIndresh
Aug 7, 2026, 10:40 am IST
inBharat, Karnataka
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Bengaluru: A major corruption scandal has surfaced in the Bengaluru Metropolitan Transport Corporation (BMTC), with preliminary investigations indicating that officials in the Central Stores and Purchase Department allegedly siphoned off crores of rupees through fraudulent procurement of bus spare parts. The corporation has constituted a three-member inquiry committee to investigate the alleged irregularities, while eight officials and employees have already been suspended in connection with the case.

According to sources, the alleged scam revolves around the procurement of spare parts required for BMTC’s fleet of 6,275 buses. Initial estimates suggest that irregularities involving nearly Rs 20 crore to Rs 25 crore may have taken place over the past several years through inflated purchases, fake billing and manipulation of stock records.

ಶಕ್ತಿ ಯೋಜನೆಯಿಂದ ಸಾರಿಗೆ ಸಂಸ್ಥೆ ನಿಶಕ್ತಿ ಮಾಡಿ ಈಗ ಬಿಎಂಟಿಸಿಯಲ್ಲಿ ಗೋಲ್‌ಮಾಲ್..??

ಬಿಎಂಟಿಸಿ ಬಸ್‌ಗಳ ಬಿಡಿಭಾಗಗಳ ಖರೀದಿಯಲ್ಲಿ ₹20–25 ಕೋಟಿ ಅಕ್ರಮ ನಡೆದಿದೆ ಎಂಬ ಮಾಧ್ಯಮ ವರದಿ ಅತ್ಯಂತ ಆತಂಕಕಾರಿ. ಅಗತ್ಯವಿಲ್ಲದ ಬಿಡಿಭಾಗಗಳ ಖರೀದಿ, ನಕಲಿ ಬಿಲ್‌ಗಳ ಸೃಷ್ಟಿ, ಗುತ್ತಿಗೆದಾರರೊಂದಿಗೆ ಶಾಮೀಲು, ವೈಯಕ್ತಿಕ ಖಾತೆಗಳಿಗೆ ಹಣ ವರ್ಗಾವಣೆ… pic.twitter.com/h5ueYXeJER

— R. Ashoka (@RAshokaBJP) August 5, 2026

Officials said the fraud came to light after BMTC Director (Security and Vigilance) Abdul Ahad ordered a detailed verification of procurement procedures following complaints of irregularities in the purchase and supply of spare parts. The preliminary inquiry reportedly found that some officials had colluded with private suppliers to defraud the transport corporation.

Investigators have alleged that certain officials purchased spare parts that were either not required or far in excess of operational demand, allowing private contractors to benefit while causing heavy financial losses to the corporation. Large quantities of such parts are reportedly lying unused in central warehouses, indicating poor planning and possible deliberate over-procurement.

The probe has also uncovered allegations that fake invoices were generated for spare parts that were never supplied. In several instances, records allegedly showed that 100 spare parts had been received even though only 50 were actually delivered. Payment, however, was reportedly released for the entire quantity. Officials are also examining cases where procurement records exist, but there is no evidence that the materials were ever dispatched to any of BMTC’s 50 depots.

Investigators suspect that forged stock entries were created to justify payments to vendors, while several purchases were allegedly made only on paper without any physical delivery of goods.

The inquiry has further revealed alleged financial transactions between private suppliers and employees of the Central Stores and Purchase Department. Some staff members are accused of receiving money directly into their personal bank accounts from companies supplying materials to BMTC workshops. These transactions are now under scrutiny to determine whether they were illegal commissions paid in return for clearing bills and approving supplies.

One of the companies under investigation reportedly supplied masking tape of inferior quality and lesser quantity than specified in the purchase order. Despite discrepancies in measurement and quality, officials allegedly certified the supplies and processed full payments. Investigators are examining whether similar practices were followed in procuring other spare parts.

The scandal has raised serious concerns because BMTC has been struggling financially for several years. Although the introduction of the State Government’s Shakti Scheme increased passenger numbers, the transport utility has continued to face financial pressure. The emergence of another major procurement scam has further exposed weaknesses in the corporation’s internal financial controls.

Authorities believe the irregularities may not be confined to the 2025-26 financial year alone. While the current investigation is focused on procurement records, stock registers, depot dispatch documents and payment files for the past year, officials are planning to extend the audit to transactions carried out over the last four to five years. They believe a wider examination could uncover additional instances of fraud and significantly increase the estimated financial loss.

The three-member inquiry committee has begun scrutinising tender documents, warehouse records, supply registers, invoices and payment files to establish the scale of the alleged fraud and identify all those responsible.

Also Read: Foreign Funding and Transparency: How India’s FCRA, US FARA and China’s Foreign NGO Law prioritise national security?

The officials and employees suspended during the investigation include Assistant Store Officer R.M. Bantanurkar, Store Superintendent Chhaya, Assistant Store Keepers Shilpa, Roopa, Prema and Nagaraju, Junior Assistant Ashok and Skilled Worker Ravish. Sources said four of the suspended employees have since returned to service after completion of their suspension period, while disciplinary proceedings continue.

Senior BMTC officials indicated that action would be taken against every individual found responsible after completion of the inquiry. If criminal misconduct involving forgery, cheating or corruption is established, the matter could also be referred to the appropriate investigating agencies for further legal action.

Topics: BMTCProcurement ScamBengaluru Metropolitan Transport CorporationCongressKarnataka Police
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