The Lokayukta police at Jabalpur on Thursday registered an FIR against the district collector of Katni, Prakash Jangre, and district excise officer of Katni RC Dwivedi for alleged misuse of official position in awarding liquor contract.
The deal allegedly led to financial loss of around Rs 6 crore to the state exchequer.
The 17 demand drafts submitted by the liquor contractor in lieu of contract awarded to them to run country-made liquor shops in various places in Katni were not cleared by the bank.
Lokayukta superintendent of police Padma Vilochan Shukla said, “In the investigation, we found clues of misuse of official position by the district collector and the district excise officer Katni in awarding liquor contracts.”
The Lokayukta police acted over certain complaints related to the matter. The liquor contracts were awarded for the financial year 2016-17 and were cancelled on April 25, 2016 by the excise department.
The state excise department has already lodged an FIR of cheating and criminal breach of trust against three officials of the Canara Bank for non-clearance of the demand draft at the Kotwali police station in Katni. The demand drafts were of different denominations.
The bidding process for allocation of the contract for sale of liquor in Katni went from March 29 to April 8, 2016.