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Madhya Pradesh Sarpanch Dismissed for Handing Panchayat Control to Contractor in Debt Deal

Laxmi Bai was removed from her post after an inquiry revealed she ceded Karod gram panchayat powers to Ranveer Singh Kushwaha in exchange for loan repayment and commissions.

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Overview

  • Laxmi Bai, sarpanch of Karod gram panchayat, signed a notarised agreement in November 2022 granting contractor Ranveer Singh Kushwaha control over the panchayat's operations.
  • The deal involved Kushwaha agreeing to repay Bai’s ₹20 lakh debt and providing her a 5% commission on panchayat contracts he secured.
  • Following administrative inquiries initiated in early 2025, Bai was dismissed from her post on May 9, 2025, for misusing her office.
  • An FIR has been registered against Kushwaha under Section 318 of the Bharatiya Nyaya Sanhita (cheating) and the Prevention of Corruption Act, with further investigations underway.
  • This case highlights systemic vulnerabilities in grassroots governance, where financial pressures from election campaigns can lead to corruption and abuse of power.