Chitrakoot: A massive ₹50-crore treasury fraud has come to light in Uttar Pradesh’s Chitrakoot district, where government treasury funds were illegally transferred into the pension accounts of retired teachers and later siphoned off. Following the discovery, authorities have frozen 95 bank accounts and initiated a comprehensive investigation into what officials fear could be an even larger financial scam.
Suspicious Transfers Detected in Routine Audit
According to official sources, the fraud surfaced during a routine audit of the district treasury, revealing that from 2023 to 2024, funds were repeatedly transferred to the bank accounts of 95 retired teachers — far exceeding their sanctioned pension amounts. Each transaction ranged between ₹5 lakh and ₹50 lakh, allegedly originating from the district treasury under unknown budgetary heads.
Once the irregularities were confirmed, the Senior Treasury Officer directed the Lead Bank Manager (LDM) and concerned branch managers to immediately freeze all 95 accounts through a formal communication issued on September 7.
How the Scam Was Exposed
The scandal came to light when two pensioners filed police complaints, triggering a deeper inquiry.
Jagat Ram Tiwari, a resident of Nevra, Mow, told police that one Om Prakash Patel approached him claiming his relatives in Indore were in the property business and needed a temporary bank account for a transaction. Trusting him, Tiwari handed over his passbook. Soon after, ₹45 lakh was credited to his account from the treasury and later withdrawn by unknown persons.
Similarly, Kamla Devi of Khandela reported that between May 15, 2023, and March 1, 2024, about ₹31 lakh was transferred to her pension account without explanation. Investigations later revealed that brokers and treasury employees colluded to withdraw the funds and distribute the proceeds among themselves.
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Treasury Staff and Middlemen Under Scrutiny
Preliminary findings indicate that a group of treasury employees may have partnered with local intermediaries and brokers, using retired teachers’ bank accounts to launder public funds. Investigators believe that the perpetrators leveraged personal relationships and trust to access account details and exploit the pensioners’ identities.
A senior official revealed that one long-serving treasury employee has emerged as a key suspect and is believed to be central to the entire network.
Source of Funds Under Investigation
Authorities are now trying to trace which budgetary head was used to release such large sums and why the pensioners’ accounts were chosen for these transfers. “We are verifying the fund trail and determining how this misappropriation occurred. All accounts linked to the case have been frozen, and details will be shared once the inquiry concludes,” said the Senior Treasury Officer.
Larger Implications
Officials suspect that the ₹50-crore figure may only be the beginning, as further audits could uncover more fraudulent transactions across other districts.
