Hyderabad police have arrested two employees of the City Armed Reserve (CAR) headquarters over allegations that ₹1.33 crore meant for police personnel’s welfare was diverted through forged cheques and unauthorised bank transfers.
Investigators are examining transactions from several welfare and service accounts, including funds intended for education, widows and other staff-related needs. Both employees have been remanded to judicial custody.
How Did the Alleged Fraud Surface?
The irregularities came to light during an internal examination of accounts maintained at the CAR headquarters. Administrative officer E Kalyani lodged a complaint with the Central Crime Station (CCS) on October 28 after discrepancies were identified in financial records.
The scrutiny covered education, sports, widow, dhobi and recreation funds, along with unit welfare, water charges and canteen accounts.
How Was the Money Allegedly Withdrawn?
According to the complaint, junior assistants B Vinay Kumar and Mohsin Jalal used unused cheque leaves from older cheque books and allegedly forged authorised officers’ signatures to withdraw money.
The cheques were presented at the State Bank of India’s Hussaini Alam branch, after which funds were transferred to individual bank accounts. Police are investigating who controlled the recipient accounts and how the payments were processed.
What Did the Records Reveal?
Investigators have identified 35 suspicious cheques and NEFT transactions between August 2022 and April 2026.
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A CCS official said the transfers lacked supporting entries in cash books and other office records. Some receiving accounts belonged to the accused employees, while police suspect other accounts may have been created to move the money. Officials also found that the cash books had been poorly maintained.
What Charges Have Been Filed?
Police registered a case under provisions of the Bharatiya Nyaya Sanhita covering criminal breach of trust, cheating, forgery, falsification of accounts and criminal conspiracy.
The allegations include misuse of cheque documents and the movement of money from accounts intended for welfare and administrative purposes. The charges remain allegations and will be examined during the investigation and subsequent legal proceedings.
What Is the Investigation Status?
Both employees were arrested on October 29 and sent to judicial custody. CCS officials said they would seek police remand for further questioning.
Investigators are continuing to trace the disputed transfers and examine whether additional bank accounts were used to divert the funds.
The420 Insight: Why Does This Matter?
The case raises concerns about financial controls over funds intended for serving police personnel and their families. Proper cheque safeguards, accurate recordkeeping and timely account reconciliation are essential to detecting unauthorised withdrawals.
