A surprise inspection by the Anti Corruption Bureau (ACB) in Sathupally Municipality of Khammam district has uncovered a revenue shortfall of ₹14.23 crore for the 2025–26 financial year, with only ₹7.99 crore collected against a total demand of ₹22.23 crore.

The ACB, Khammam Range, conducted the raid on March 31 at the office of the Municipal Commissioner, scrutinising records, financial transactions, tax collections and pending applications. Officials found that ₹13.08 crore under the Layout Regularisation Scheme (LRS) remains uncollected, while property tax dues stood at ₹1.02 crore. In addition, ₹8.72 lakh in shopping complex property tax and ₹3.80 lakh in advertisement tax were also found pending, with no collections recorded under the latter.

During the inspection, officials also examined staff mobile phones and detected suspicious financial transactions. A mobile phone belonging to bill collector Naguibandi Narasimha Rao allegedly revealed questionable dealings involving Srinivas, a municipal manager, and others.

The ACB further noted irregularities in the maintenance of records and in revenue collection processes, indicating possible systemic lapses. Officials said a detailed verification is underway to determine the extent of discrepancies and fix responsibility.